Leasehold land treatment

IndAS 116 recognises all the amounts either at fair value or PV’s, which ever is lower on the balance sheet on the commencement date of the lease. After commencement, lease interest payments at borrowing cost or implicit rate are adjusted to the lease liability and expensed to profit and losses when they are cleared, or could be accruals probably. Depreciation is taken to profit and loss as well which is not required for land. This site offers a very good insight into IndAS 116, IndAS 17 and IFRS 16 differences: 

https://vinodkothari.com/2017/09/faqs-on-ind-as-116-the-new-lease-accounting-standard/

Thankyou so much for your reply. Help me with one more thing, Please tell what will be its impact in income tax , when the initial premium will be written off in books?

Did you mean advance on lease? It is added to the RTU asset including direct costs less incentives.

RTU Asset a/c

Direct costs a/c Asset

Advance a/c Asset

To Incentives a/c Asset

To Lease liability a/c Liability

this is in the books of lessee. 

The subsequent measurement for land is either at revaluation model (under PPE), or fair value model (for investment property). The RTU Asset is depreciated in the subsequent years, not the land itself. 

G‘The standard IndAS 40, applies for measurement in a lessee financials statement of investment property under finance lessee and also measurement in the lessor’s Financials statements of investment property leased out under an operating lease.’ Sorry, I mean this.

The IndAS website is not opening, otherwise, all resources are useful. Try it from your end.