Advance rent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 July 2011
whether advance rent is taxable in the year in which it is received?
CA Navin Jain
(Expert)
28 July 2011
it will be taxable in the related year of the rent
28 July 2011
No. The reason is given here under.
a) Income under the head house property is computed on annual value basis.
b) Actual rent is rent received or receivable. Rent can be maximum of 12 months. Not more than 12 months.
c)Rent is receivable only if the property is let out. Suppose the property is let out for 12 months then rent receivable can only of 12 months.
Therefore, advance rent is taxable not in the year of receipt but in the financial year to which it belongs.
a) Income under the head house property is computed on annual value basis.
b) Actual rent is rent received or receivable. Rent can be maximum of 12 months. Not more than 12 months.
c)Rent is receivable only if the property is let out. Suppose the property is let out for 12 months then rent receivable can only of 12 months.
Therefore, advance rent is taxable not in the year of receipt but in the financial year to which it belongs.
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