Transfer of Leasehold Property- Capital Gain Tax
This query is : Resolved
01 March 2021
Dear Sir/Madam,
My uncle , like others , was allotted a plot of land at Salt Lake near Kolkata on long term lease basis. Lease deed was executed in the year 1985 by the State Govt. upon payment of Rs. 50,000/- only. He constructed a single storied house property and then gave long term tenancy right to a gentleman at Rs.5.00 lakh ( one time payment ) in the year 1995. This practice was in vogue in Salt Lake. Local Govt. was also aware of this fact.
Meanwhile , the said tenant constructed three storied building on the same structure. Now, the State Govt. proposes to give ownership right to every lease-holder upon payment of certain money as transfer charges . Registration charges to be borne by my uncle . Present valuation of the property is around Rs. 2.5 Crore.
Now, the points are: 1) Stamp duty / Registration charges to be calculated on Market Value of Rs. 2.50 crore. Can this liability be shifted to the Tenant ?
2) Is there any liability on account of Income Tax- Capital Gain Tax? I understand this liability is primarily lies on my Uncle. How can he escapes from this Liability?
3) What will be the mode of calculation of Capital Gains?
Your valued opinion is sought.
My uncle , like others , was allotted a plot of land at Salt Lake near Kolkata on long term lease basis. Lease deed was executed in the year 1985 by the State Govt. upon payment of Rs. 50,000/- only. He constructed a single storied house property and then gave long term tenancy right to a gentleman at Rs.5.00 lakh ( one time payment ) in the year 1995. This practice was in vogue in Salt Lake. Local Govt. was also aware of this fact.
Meanwhile , the said tenant constructed three storied building on the same structure. Now, the State Govt. proposes to give ownership right to every lease-holder upon payment of certain money as transfer charges . Registration charges to be borne by my uncle . Present valuation of the property is around Rs. 2.5 Crore.
Now, the points are: 1) Stamp duty / Registration charges to be calculated on Market Value of Rs. 2.50 crore. Can this liability be shifted to the Tenant ?
2) Is there any liability on account of Income Tax- Capital Gain Tax? I understand this liability is primarily lies on my Uncle. How can he escapes from this Liability?
3) What will be the mode of calculation of Capital Gains?
Your valued opinion is sought.
02 March 2021
Now tenant is the owner of the property your uncle can't get back the property. So tenant meet all the expenses and registration made in his name.
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02 March 2021
Seetharaman Sir,
One humble query: Is the liability , if any, on account of CAPITAL GAIN TAX would fall on my uncle?
One humble query: Is the liability , if any, on account of CAPITAL GAIN TAX would fall on my uncle?
03 March 2021
No liability in case of direct transfer to tenent. 1995 itself you transferred the property.
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