Lump-sum lease premium or upfront lease charges not “rent”
The Central Board of Direct Taxes (CBDT) issued guidance to clarify that a lump-sum lease premium or one-time upfront lease charges that are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property, are not “rent,” and thus are not subject to tax withholding (deduction) at source. Read an October 2016 report [PDF 273 KB] of KPMG