lease of land
shehzad shroff
(Querist) 02 July 2009
This query is : Resolved
Dear Sir,
Mr. A is a registered owner of land. Company B. wants to build mall on that land. Mr. A dont want to give ownership of land to company.
Can Mr. A give on lease of 50 years that land to company. Suppose Mr. A takes by way of premium Rs. ---- Lacs.
My queries are:
1) Is it possible to do as above.
2) Is it necessary to register a document with the government authorities or it will do if they execute a lease deed on stamp paper of Rs. 100
3) Company is telling that it will pay premium by way of installments every year.
4) Is it possible that Mr. A takes premium & also rent for every year.
5) Is it possible that Mr. A takes consideration by way of share in profits of that company.
Also please suggest other ways available, if any.
Please reply ASAP
Thanks
sanjeev murthy desai
(Expert) 02 July 2009
Dear Farhad,
1. Yes it is possible.
2. It should be registered and should be paid stamp duty for 50 years.
3. If you interested this deal you can recieve premieum every year.
4. Yes offcourse you can have premium amount as the non refundable and rent also.
5. that is also possible and its depend upon parties offer and acceptance.
sanjeev desai
shehzad shroff
(Querist) 02 July 2009
Dear Sanjay,
Thanks for ur reply
If i dont register the document & give on lease by executing lease deed on stamp paper of Rs. 100, then what are the repyrcussions?
If i give it for 50 years, than will Mr.A will be regarded as owner or ownership passes to company.plz tell me at what no of years the ownership passes i.e. after 30 years, etc. land is in gujarat.
sanjeev murthy desai
(Expert) 02 July 2009
Dear shezad,
If its not registered and stamped that documents legally not valid, and you also cannot cliam any compensation on the basis of that document and that document should not be admissibale in evidence in court of law. Why you want to taking that much big risk in the big deal.
shehzad shroff
(Querist) 02 July 2009
ok sir,
please tell me for how much years i should give lease of land. I dont want to lose ownership. also plz suggest if it will attract capital gains tax as per income tax act.
thanks
sanjeev murthy desai
(Expert) 02 July 2009
There is no limitation to lease. Please get a legal opinion in effecient lawyer in your state.
Manish Singh
(Expert) 08 July 2009
Mr. Desai has already given you an elaborated reply which i truly support.
yes u can enter into this kind of ransaction.
you shall not loose your ownership if you give any property on lease so ust dont worry and there is no time period where u relinquish your ownership automatically.
yes it shall attract captal gains tax and it has been authenticated by several supreme court udgment as it shall amount to trnsfer and and includes capital.
there were some technical difficulty, on the part of lessee, to compute cost of aquisition but this has been removed by notification in 1994 and the cost of acquisition shall be taken as nil.
