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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2014 Sir
I am an accountant and want your kind guidance. My client want to show the rental income. He is drawing the rent in cash of Rs.3.13L pa. Can he deposit the amount in cash for the whole year for the past year?
In accounts can he show quarterly the amount of rent in books.What is the procedure to deposit the amount in saving a/c.And whether the rent receipt is necessary to maintain for the records?
Kindly advise on urgent basis.
Regard

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 June 2014 the ideal way to deposit it in bank is to do it monthly.

regardless, even if you deposit, quarterly, yearly of half yearly, there wont be any tax impact.

rent agreement and the copy of receipt issued by himself should be sufficient records.

Rupesh Jain

Rupesh Jain (Expert)
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23 June 2014 he can deposit the rent by monthly and for rental income it is better if he have rent agreement and issue rent receipts also to the tenants.

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