i think income tax act not defined about advance reciept of rent.
pawar (Accountant) 25 June 2011
adavnce rent received it is taxable whatever u earn or receivce above limit it is taxable.
sandesh (Articles) 27 June 2011
I agree with kaushal sir & I have take help on this point from my friend , he is from E & Y.
He said " Advance rent Can't be rent received or reciveable of the year of receipt ".
Look at cocept of Received or receivable in accounting Cpt Book.
Thanks & Regards
Ravinder Chauhan (Manager Finance) 27 June 2011
Just advise if tds deducted on advance rent than
kamal kishor sen (STUDENT Rajasthan) 29 June 2011
|Originally posted by : kamal kishor sen|
U/S SECTION 23
RENT RECEIVED OR RECEIVABLE , THE WORD RECEIVED INCLUDES ADVANCE RENT ALSO
BUT WAIT EXPERT COMMENTS.
yes friend's rent received/receivable does not include advanced rent , i read it in v.k. singhania
deepak kumar srivastava (na) 12 July 2011
THE CHARGING SEC OF HOUSE PROPERTY INCOME IS SEC-22
THE LANGUAGE OF SEC-22 :-
THE ANNUAL VALUE OF PROPERTY SHALL BE CHARGEABLE TO INCOME TAX .
MEANING OF ANNUAL VALUE IN SEC-23 WHICH SAYS ANNUAL VALUE IS :-
1.THE SUM FOR WHICH THE PROPERTY MIGHT REASONABLY BE EXPECTED TO LET FROM YEAR TO YEAR i.e lower among municipal annual value and standard rent p.a
2.THE ACTUAL RENT RECIEVED OR RECIEVABLE IF THE PROPERTY IS A LET OUT PROPERTY
WHICHEVER IS HIGHER
NOW THE MAIN POINT IS WHAT IS THE MEANING OF WORD RECIEVED OR RECIEVABLE:-
IT DEPENDS UPON THE METHOD OF ACCOUNTING REGULARLY FOLLOWED BY THE ASSESSE
SAY U HAVE RECIEVED RANT OF 14 MONTHS DURING P.Y 210-2011
1. IF CASH BASIS ACCOUNTING -----ACTUAL RENT RECIEVED = RENT OF 14 MONTHS
2 . IF ACCRUAL BASIS OF ACCOUNTING------------------ ACTUAL RENT RECIEVABLE= RENT OF 12 MONTHS ONLY IF PROPETY IS LET OUT THROUGHOUT THE WHOLE 12 MONTHS
C R RADHAKRISHNAN (ACCOUNTANT) 24 August 2017
SUPPOSE WE RECED ADVANCE FOR MANDAPAM BOOKING IS IT TAXABLE AT THE TIME OF BOOKING. PLEASE CONFIRM FOR E.G WE RECEIVED RS.70000/- AS ADVANCE HOW MUCH WE PAY GST AT THE TIME OF BOOKING