Income from hp or business income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2011 whether rent received in advance is taxable in the year of receipt or subsequent year which it is pertains.
Please provide me link with your suitable answer for individual assesee

A) if income classified as hp income
b) if income is classified as business income

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 August 2011 A) Under the Income tax act,1961 advance rent received is included in the annual value of the year in which receipt takes place. As per clause 28 of the DTC Bill, the amount of rent received in advance shall be included in the gross rent of the financial year to which the rent relates. This is at departure from the 1961 Act.
B) If mercantile system is followed, advance will be assessed in the year to which it belongs.

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