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Leasehold land

07 March 2019

Will the deduction of any lumsum amout paid for acquiring leasehold land be allowed as deduction under Income Tax Act, 1961 ? If yes, under which section and how ?

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4 Replies

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 07 March 2019

no it will not be allowed.it will be added to the cost of land

Gaurav (SELF EMPLOYED) (100 Points)
Replied 07 March 2019

It will add to your cost of land and whenever you sell it, if it a long term capital asset you can claim indexation benefit on it.

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 07 March 2019

agreed with giridhar sir

Ashish Bansal (19 Points)
Replied 07 March 2019

sir, it is a leasehold land not a freehold..
lumpsum amount paid is for lease rentals paid in advance... and accordingly I guess should be allowed over the period of lease...
Kindly provide the assistance on this view!