Tax Treatment on Advance received from tenants

This query is : Resolved

AK.Mohan Raj Bharathi (Querist)
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19 February 2009 Please clarify my doubt regarding tax treatment on advance received from tenants by the owner of the house property. I want to know what is the tax treatment for the amount until it is repaid and how it shown in the balance sheet under what head.

A. Sankaranarayana

A. Sankaranarayana (Expert)
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19 February 2009 Dear Mr. A.K. Mohan,

1. As per my knowledge, Deposit received from Tenant is not an income, no tax on that income.

2. Put the deposit under the head Current Liabilities.

3. If u deposit the amount in F.D., interest from such F.D. is considered as Income from Other sources.

I didn't get any obejction from the Income Tax Authorities still, when I produced my client's account in the abvoe said manner.

A. Sankaranarayana
9448144025
asankaranarayana@gmail.com