Capital Gains

You had purchased a leasehold property and hence it was not your property it was just in your lease and hence you are just selling the rights in this lease and not the house property.

In such case you will be claiming exemption u/s 54F of the Income tax act and in that case to exempt your capital gain you need to invest entire sale consideration in new house.

If you cant do that while filing your return of income you will have to deposit same in capital gain account scheme before filing your return of income.

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Hi

Yes, this would form part of cost of acquisition provided you haven't claimed deduction in respect of such lease rent payment earlier.

No need to deposit in CGDS if the leasehold property was a residential house property. However, if the leasehold property was a land, then you need to deposit balance sales consideration.

Yes, capital gain exemption shall be provided if-

• Capital gain on sale of house property is invested in new residential house property, OR
• Sales consideration on sale of land is invested in new residential house property

Hello,

Yes, this upfront lease rent would form part of the cost of acquisition, if the deduction isn't claimed earlier in for the same.

If the leasehold property which is being sold is a residential property, then you can claim full exemption u/s. 54 for the investment of the LTCG of Rs. 50 Lakhs in another residential property.

Otherwise, if the leasehold property is a land, then you will have to invest the whole of the sale consideration in another residential property to claim full exemption u/s. 54F.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

Yes, It would be part of COA for computing capital gain.

You dont require to put any money in capital gain account scheme provided the leasehold property was a residential house property. 

Please note that in order to claim exemption, you need to invest the capital gain amount if a house property is sold. However, in case of sale of a land, entire sales consideration needs to be invested.

Yes that should be all right.

Yes. That's alright.

Yes. That's alright.

Report the capital gain in ITR for the respective FY and exemption under section 54.

Yes, that would be fine.