Ltcg tax savings

Hi,

I had taken a property on leased from the landlord in the year 96-97 for 10 lacs and i had again leased it back to the lessor for 45 lacs in the current year i.e. 2016-17. Money has been received in my personal account. I have one more residential property in joint name with my spouse.

How can i get tax exemption benefit in this case.

Thanks

Replies (3)

are u sure mam its a lease and leaseback transaction ?

or it is sale and leaseback? kindly confirm for further solution.

sale and leaseback transactions are there but no info about lease and leaseback.

i guess either the 1st initial lease would have been finished then you might have given it on lease back is it?

Hi,

Initially the lease was for 99 years and it doesn't have leaseback clause.

The amount was paid as an interest free advance and treated as salami or premium payable.

Now have surrendered the flat and received the amount.

Will this amount be taxable if yes under which head.

Thanks

 

in this case basically in my opinion 2 diff scenarios can be there as below :

 

1. this can be considered as that 99 years of lease shall be considered as in which lessee to be the deemed owner and so after 99 years if the lessee is getting any sum from the lessor it shall be construed as to be a deemed sale and thus shall be considered for capital gains.

2. or else if there is any agreement is done between the parties for the amount to be transfered in the end as a part of agreement of lease originally then it could be considered as not taxable in your hands.

do lemme know if need further clarification.

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