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Regarding lock in period lease
Dear people,
Suppose, there is a company called XYZ and they are performing operation in india. Due to some unfavorable reason company is going to shut down and there is a lock in period of 3 yrs for lease. Only 6 month has lapsed and there is another company who want to overtake lease agreement of XYZ.
My queries is that XYZ are supposed to pay rent for 5 yrs and suddenly another company took over the rent on mutual Is any income arises in this case for XYZ company sine they were supposed to pay 3 yrs rent .
Replies (3)
What is the total lease period of XYZ? is it 5 years with lock in period of 3 years? The sub lease between XYZ and new concern is at what rent? Same as original cost?
It is for the 3 yrs .
Yeah for the same amount Sublease is taken
Hi Ajay,
The rent earned from sublease shall be treated as Income of XYZ, however the same shall be deducted from the further rent expoenses paid for the original lease,
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