tax treatment
This query is : Resolved
ATUL RATHI
(Querist)
07 March 2011
if company a leases a land (book value 2 crores)to company b and receives a lump sum amount of 18.00 crores and also 10.00 crores as development fees and after the development hands the land to b and start receiving lease rent, how shall the gains will be taxed and at what rate
08 March 2011
If the nature of lease is perpectual,transaction may be treated as sale, and tax is to be levied under capital gain , based on the valuation of land, otherwise the laese amount is business income.
In both the cases the development fees is business income.
In both the cases the development fees is business income.
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ATUL RATHI
(Querist)
10 March 2011
In connection with the previous query if the company receives lease rent in advance for the complete period of lease (say 30 years) , how it will be treated.pl guide
Dhirajlal Rambhia
(Expert)
06 November 2021
It has to be amortize for the lease period.
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