Advance rental received in Jan 14 for house property for 12 months from Jan 14 to Dec 14.Whether the tax liability will be for AY 13-14 or will be for AY13-14 & 14-15 (part of rent from jan to march for AY 13-14 and remaining 9 months rent for AY 14-15)
Dear Sir
Rent in your case can be offerred in 2 different years - AY 2013-14 & AY 2014-15 (advance rent cannot be rent received/receivable of the year of receipt - CIT v. Prince Rubber & Plastics [2004] 1 SOT 85 (Asr).).
Further, if TDS has been made from such advance rent, you have to claim TDS in 2 AY, proportionately to the income you offer. (As per Circular No.5/2002, you can make the proportionate claim of TDS for different AYs based on a single certificate. - please confirm this circular with someone as I don't know if its effect has changed in the light of Form 26AS).
Regards
Ajay
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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