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Manish Trivedi (CA-Final Student)     24 June 2011

Income Tax on Advance Rent

Whether Advance Rent Received From a Party Is Taxable Under Head Income From House Property in The Same Assessment Year in which it is received. If Yes, Then Under Which Section It is Mentioned .

 



 23 Replies

kamal kishor sen

kamal kishor sen (STUDENT Rajasthan)     24 June 2011

U/S SECTION 23

RENT RECEIVED OR RECEIVABLE , THE WORD RECEIVED INCLUDES ADVANCE RENT ALSO

BUT WAIT EXPERT COMMENTS.

1 Like
Divya K S

Divya K S (CA)     24 June 2011

Agree. Rent Received includes Advance rent also & hence taxable.

1 Like
CA ADITYA SHARMA

CA ADITYA SHARMA (CA IN PRACTICE )     24 June 2011

yes it will be taxable                                                  

1 Like
CA Shefali Gauba

CA Shefali Gauba (searching for JOB)     24 June 2011

Yes , it is taxable.....

Anvesh Desai

Anvesh Desai (Chartered Accountant)     24 June 2011

of course its taxable.... Under income tax act, we always follow accrual concept to decide the

taxability of an income i.e. income are taxable on acrual basis...

@*CS Siddharth Bumb. *

@*CS Siddharth Bumb. * (B.Com, CA Final, CS )     24 June 2011

Yes agree with all..

U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt..

1 Like
Aparna Raja K.C

Aparna Raja K.C (Student)     24 June 2011

Originally posted by : Siddharth Bumb

U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt..

 Agree .. :)

PRADEEP REDDY

PRADEEP REDDY (CHARTERED ACCOUNTANT)     24 June 2011

 

Originally posted by : Siddharth Bumb

U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt..

 Agree .. :)

1 Like

(Guest)

Friends.

You are all interpreting it wrong. 

1. Income under the head house property is computed on annual value basis.

2. Actual rent is rent received or receivable. Rent can be maximum of 12 months. Not more than 12 months.

Rent is receivable onlyif the property is let out. Suppose the property is let out for 12 months then rent receivable can only of 12 months. 

Therefore advance rent is taxable not in the year of receipt but of the FY of which it belongs. 

Happy to help

thanks

3 Like
prakash

prakash (article)     24 June 2011

U/S 23 of income tax act, it says that if you are receiving advance rent then it will be char gable to tax n the year of receipt.. Agree with all

CA Gaurav Jain

CA Gaurav Jain (Charterted Accountant)     25 June 2011

In my opinion kaushal(taxbykk) is right......
Mukesh Kumar Singh

Mukesh Kumar Singh (CA-FINAL)     25 June 2011

yes agreed

Sumiti Jain

Sumiti Jain (FP)     25 June 2011

I think Rental income will be Year to year basis & Mr. Kaushal is right.

1 Like

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