I would like to know the income tax implications when a land on lease (for 99 years) is sold. The lessor has given no objection to the lessee for selling the land. I believe the transaction would be chargeable under Capital Gains Tax. Can the 'salaami' paid at the lease inception be considered as Cost of Acquisiion? Please help!
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Income Tax implications on Sale of Land on Lease
Replies (1)
Capital Gains would surely be attracted!. The sale consideration would be reduced by the Lease premium (u call it Salaami??) paid by you at the time of assuming the lease or later. If you are required to pay anything further to the owner of the lad now, that can also be taken as cost. If te lease started 3 years or ealrier, u can get benefit of Long term gains and indexation.
More details may help u get a clearer answer
Bye
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