information needed on house property

Others 417 views 1 replies

 

1.please help me to distinguish between 'unrealised rent' & 'arrears of rent'  with numerical examples ?

2. when will both the amounts be taxable ?

3. can we claim standard deduction of 30% on both ?

Replies (1)

Unrealised rent is the amount which the tenant has to pay but hasn't paid.

Arrear rent is also the amount due from the tenant only. But such arrear will be beacuse of increase in the rent amount retrospectively. Say during April 2009 you would have asked your tenant to pay Rs1000 additional rent from April 2008 itself. The addtional rent will be paid only after April 2009.

Tax treatment:

In case or arrear of rent : Taxed when it is received.

Unrealised rent : Taxed at the time of receipt provided sufficient steps are taken to realise rent. If not it is taxable in year of accural.


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