An assessee used to file his return of income showing income from rent on receipt basis and was assessed accordingly upto a/y 2009-10. during f.y. 2009-10 he recd a sum of rs 100000.00 by way of enhancement for last six year as the govt department (tenant)enhanced the rate of rent with retrospective effect. will the sum of Rs 100000.00 be taxable in a/y 2010-11?
can it be spread over last six years. is there any provisions of tax relief in such cases. like section 89(1). wt provisions will govern such cases
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it query
Replies (3)
The rent so recieved would be taxable under section 25AA of the Act which speaks of arrear rent recieved subsequently. The amount so recovered will be taxable in the assessment year relevant to the previous year in which such amount is recieved.
Dear Ravi
I suppose u r talking about rent which is taxeable under either "PGBP" or "Other souces" where assesee has the option to offer his income to tax either on receipt or accrual basis, because under "House property" "rent is taxable on received/receivable basis"
Arrears -
PGBP/othersouces - Since assessee is following cash basis of accounting therefore it has to be taxed in FY 2009-2010..Further any expenses incurred in relation to that can be deducted.
House Property- Sec 25B says that "any arrear is taxable in the year of receipt (it cannot be spread) i:e FY 2009-2010..Standard Deduction of 30% shall be allowed
Further, Relief u/s 89 is available only in case of salary, Thereore it cannot be claimed...
Thanks Aamir Sir..........
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