02 January 2011
Both these sections deal with taxability of realisation of unrealised rent, after the deduction is allowed in any of the earlier years towards the amount of unrealised rent.
Section 25A - says that after realisation of unrealised rent, if the deduction is allowed for unrealised rent under section 24(1)(x), before section 24 amended by Finance Act, 2001. Such unrealised rent should be taxed in the year of receipt.
Section 25AA - says that after realisation of unrealised rent, if unrealised rent is not included in the income from house property, under explanation to section 23(1). Such unrealised rent should be taxed in the year of receipt.
It must be noted that the principle in both these sections is same, i.e. taxability of unrealised rent.
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