Income Tax on Advance Rent

U/S SECTION 23

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

BUT WAIT EXPERT COMMENTS.

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

yes it will be taxable                                                  

Yes , it is taxable.....

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...

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..

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 .. :)

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

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

yes agreed

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

plz ref /experts/tax-imolication-of-rent-received-in-advance-309060.asp