Dear Sir

I have the following query:

One of my clients have incorporated a Limited company in the month of March, 2014.  The land is in the name of one of the promoter directors. Earlier the land was agricultural.  The promoter director got the CLU from Govt authorities in his own name. 

Now my query is as under:-

First - whether the company can construct building on the same land, if the promoter director gives it to company on lease say for 15 years. And what will be status of the Building after completion of lease.  Whether the building has to be transferred in the name of the promoter director, if the lease is not renewed.

Second – Can the promoter director transfer the land after a gap of three years to the company on allotment of of Share Capital. Then there will be long term gain on transfer of land to the company and the taxation will be on the lower side.

Please advice

CA M.P. Singh

Ludhiana