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Rent advance

sasi dass (Audit Asst) (51 Points)

08 May 2016

Is Rent Advance is adjusted against Rent Income is liable for Income Tax. If Yes, Can I Claim any Expenses from the Above.

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3 Replies

Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 08 May 2016

Hi,

I think ur query is, u let out a property on rent and received deposit for the same. Later, instead of receiving rent u adjusted the rent receivable against advance. Same is nothing but rent income only and will be liable to tax as rent income.

What sort of Expense u want to claim against this income?

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You can get 30% deduction for repairs and collection

shivam agarwal (ca student) (175 Points)
Replied 09 May 2016

If you are in the business of leasing then you can claim actual expenses but if you are not in business of leasing then your income will be taxable under the head house property and you can claim 30% Standard deduction and can claim municipal tax paid during the year.