Conversion of leasehold land to freehold

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..... Conversion of leasehold land to freehold
Query (Issue) Started By: - Sanjiv Chatterjee Dated:- 19-5-2011 Last Reply Date:- 20-5-2011 Income Tax
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Income Tax
A family held a pece .....

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..... of land on leasehold basis for the last 90 years and also constructed 2 houses on it & used it for residential purposes. It plans to convert the land to freehold and sell it immediately. Query is: .....

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..... 1. Will this be sale of a long term asset or short term? 2. Will the conversion fees tantamount to cost of improvement? 3. How is the leasehold land to be valued? Reply By GOPALJI AGRAWAL: The Repl .....

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..... y: Before replying your query, it would be advisable to through the lease deed first. Generally, the freehold charges would be capitalised. The long /short term status would be ascetained from the da .....

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..... te of vesting of interest in the property.
Discussion Forum - Knowledge Sharing .....

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