The aim of this research is to highlight some loopholes in the current legal position related to the taxation of the Limited Liability Partnerships in India; as well as, highlight some of the problems related to the conversion of general partnership firms and limited companies into the Limited Liability Partnership in the light of the following acts: LIMITED LIABILITY PARTNERSHIP ACT, 2008; THE FINANCE ACT, 2009. The researcher has made the best possible effort to point out the various loopholes present in current legal position related to the Limited Liability Partnerships in India, particularly in relation to the taxation and convertibility. The study has been made in the light of the current legal position in various countries like U.S.A., Germany, Australia and U.K. etc. The researcher also thinks there is ample scope for further research in this issue.