income from rent...

an assessee used to file his return of income showing income of rent on recipt basis and was assessed accordingly upto the assesment year 2005-06. during the financial year 2005-06, he recieved a sum of Rs 50000 by way of enhancement for the last six years as the government department(tenant) enhanced the rate of rent with retrospective effect. will the sum of Rs 50000 be taxable in the assesment year 2006-07? can it be spread over the last six years? is there any provision of tax relief in such cases?
    
plz help me out??????????/
Replies (2)

Dear freind,

1) You have mentioned that the assessee filing his return  on  cash basis upto 2005-06.

2) Since the assessee has received the additional rent  in the financial year 2005-06,accordingly the same will be considered as rent  for that year, however, he will get the duduction of 30% on that additional rent also.

Thanks & Regards

MANJUNATH

Sorry dear, this additional rent of 50000 will be taxed in the current year only, and thats beneficial also.

U can claim 30% Standard deduction uder section 24 on this amount also.

If u will wish to spread this over last 6 years than it will be considered as if u had not paid taxes on this amount since last 6 years and you would be liable to Interest and penalty.  U might be attracted by many penal provisions as, concealment of particulars of income.  Tax not paid, improper return filed, etc.

So let it be taxed in the current year only and thats the only correct treatment.

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