Shobhit Jain (2nd Year Article) (94 Points)
15 March 2012Unrealised Rent Issue
(PY 06-07) assesse claimed deduction of 22500 for unrealised rent out of which 16500 was allowed as deduction for that year. On 10.8.11, he recovered 10500 from the defaulter
Income to be added to HP will be
22500-16500+10500 = 16500???
am i right or not.....???
Sonam Bidasaria
(CA)
(770 Points)
Replied 16 March 2012
As you have said, out of your proposed claim of Rs. 22,500, only Rs. 16,500 was allowed. That means on the balance, you had already paid tax.
Hence, only on Rs. 10,500 which was subsequenly recovered (out of Rs. 16,500) will be taxed under Sec 25A.
CAclubindia
