Accounting of rental income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 September 2011
If a firm has rental income by leasing out machinery and for 4 months it is unable to receive the rent and receives rent for only 8 months then whether the accounting of rent can be done on cash basis or mercantile system has to be followed? In effect the firm has not received the rental income for 4 month and received only for 8 months so what should be the treatment in accounts. Also what impact to be taken care of in Income Tax? Please suggest the effective way since assessee firm might end up paying tax on income which it has never earned.
26 September 2011
Please mention the person as Assessee ?
Who is assessee an individual, company or partnership and also whether he is business of leasing o oit is one time leasing
Who is assessee an individual, company or partnership and also whether he is business of leasing o oit is one time leasing
26 September 2011
If in the previous year your client has followed the cash system of accounting then yeas but if since pas several years it is following mercantile system of accounting then you have provide the rent for 12 months irrespective of whether rent has been received or not.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Reporting of STCG on Property in ITR
- Not able to file ITR
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
