House property
This query is : Resolved
13 December 2013
What is the difference between arrears of rent received and recovery of unrealised rent
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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