Premium paid for NOIDA Land

Raman (CA) (62 Points)

29 July 2010  

Dear colleagures,

A pvt ltd. company while purchasing an industrial from NOIDA authority, has entered into

an Lease Agreement whereby they pay a PREMIUM of Rs.98 lakhs (non-refundable) and

an annual lease rent of Rs.2 lakhs.  My queries are:

a) Whether PREMIUM paid can be claimed as exp under IT Act.

b) Whether TDS to be deducted on lease rent?

Pls clarify.

Rgds

Raman