11 February 2011
Section 25A is abolished and New section inserted on behalf of that,i.e., section 25AA, this says that any unrealised rent received in any other year will be taxable in the hands of the receiver/assessee which was exempt earlier or any previous related year.
section 25B is related to arrears, which says that amount received as arrears will be taxable. Arrears means says if rent increased by Rs. 1,000 but from Aug'2010 and this is feb'2011 then rent received for from aug'2010 to feb'2011 means 7 months will be arrears and taxable in the hands of assessee after 30% deduction.
14 February 2011
See Sir, Section 25AA says that, amount which has not been taxed earlier will be taxable, hence this amount will be disallowed for exemption purpose.
e.g., Mr. A had unrealised rent in the year of 2004-05 of Rs. 7,000 but only Rs. 5,000 has been exempted as per IT officials permission. Now, Mr. A receives Rs. 7,000 from his tenant in the year of 2010-11 but this time only Rs. 5,000 will be taxable means disallowed for exemption and Rs 2,000 will be exempt in the hands of Mr. A. This is because Mr. A had pay tax on Rs. 2,000 in the year of 2004-05 when this amount not exempted by IT officers.
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