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TAX PLANNING - LEASE

Adv. S Sharma (Lawyer) (574 Points)

19 December 2007

HI ALL

UNDER INCOME TAX ACT IF THE GOVERNMENT LEASSED HIS PROPERTY TO COMPNAY FOR MORE THEN 12 YEAR THEN THE COMPANY WILL BE LIABLE FOR TAX.

CAN U GUYS TELL ME THE APPROPRIATE SECTION. BASICALLY IT RELATES TO 12 YEARS TYPE SOMETHING OR MAY BE IN SECTION 269 OF THE ACT.

THX AND ITS TOO URGENT

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2 Replies

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 20 December 2007

Hi Anil For this you can refer Section 269A(h) & 269UA(f) (f) "transfer",- (i) in relation to any immovable property referred to in sub-clause (i) of clause (d), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation.-For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the term for which such lease is to be granted and the further term or terms for which it can be so extended is not less than twelve years; (ii) in relation to any immovable property of the nature referred to in sub-clause (ii) of clause (d), means the doing of anything (whether by way of admitting as a member of or by way of transfer of shares in a co-operative society or company or other association of persons or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, such property