House property
This query is : Resolved
Yash Tibrewal
(Querist)
13 December 2013
What is the difference between arrears of rent received and recovery of unrealised rent
CA PARAS BAFNA
(Expert)
13 December 2013
Arrears of Rent........ Received :
---------------------------------
This can be said as receipt of extra rental income.
.
Take it as if you are a land lord and Your request/threat for increase in rental charges of the earlier years has materialised.
.
It is always taxable. It is at par with the current rate as far as 30% standard deduction is concerned.
.
Unrealised Rent Received-
-------------------------
This can be said as receipt out of bad debts.
.
Take it as if you are a land lord and Your follow up for recovery of earlier year's rental charges of a defaulter-tenant has materialised.
.
It is taxable only when earlier allowed as Unrealised Rent in the computational mechanism. Standard Deduction is not allowed.
.
---------------------------------
This can be said as receipt of extra rental income.
.
Take it as if you are a land lord and Your request/threat for increase in rental charges of the earlier years has materialised.
.
It is always taxable. It is at par with the current rate as far as 30% standard deduction is concerned.
.
Unrealised Rent Received-
-------------------------
This can be said as receipt out of bad debts.
.
Take it as if you are a land lord and Your follow up for recovery of earlier year's rental charges of a defaulter-tenant has materialised.
.
It is taxable only when earlier allowed as Unrealised Rent in the computational mechanism. Standard Deduction is not allowed.
.
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