Upfront/Lump Sum lease premium for long term lease not rent u/s 194I
Circular No 35/2016 Dated 13.10.2016
Lump Sum lease premium or One time upfront lease charges which are not adjustable against periodic rent , paid or payable for acquisition of long term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194I of the act. Therefore such payments are not liable for TDS under Section 194I of the Act.
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