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Rent on Heavy deposit

Others 1574 views 7 replies

mohammad tarique sohail

accountant

199 Points Posted on 28 November 2018

I have given my premises on rent of heavy deposit of Rs. 8lacs , and getting on rent Rs. 1000/-. so I have to pay tax income on rent Rs.12000/- . or any criteria on heavy deposit. refer section on heavy deposit. pls.

Replies (7)

Nivedita

SME - Finance

758 Points Posted on 28 November 2018

Heavy deposit - Means what ..? Received or paid How much are you receiving as rent?

mohammad tarique sohail

accountant

199 Points Posted on 28 November 2018

I have received 8 lacs as a security deposit. getting rent 12000/-

Nivedita

SME - Finance

758 Points Posted on 28 November 2018

No tax implications - Security deposit

Nivedita

SME - Finance

758 Points Posted on 28 November 2018

Provided it is paid back & not adjusted against rentals .. Best would be if the Rent agreement states such amount clearly with terms etc

mohammad tarique sohail

accountant

199 Points Posted on 28 November 2018

I am getting nominal rent 1000 per month,should it be circle rate/municipal rate prescribed on area/location.

mohammad tarique sohail

accountant

199 Points Posted on 28 November 2018

I am asking about rent . Iam getting nominal rent 1000 per month,should it be circle rate/municipal rate prescribed on area/location.

Rakesh Bandal

Self Employed and Agriculture

1349 Points Posted on 30 November 2018

You have actually rented your property

normally rules mentioned by you are applicable to deemed to be letout, but you have to prove (through rent agreement) about real rent which you have received i.e. only 1000/- p.m. if AO requires so

Normally logic is that as you have received such huge amont of deposit of Rs. 8 lakhs then and only you have rented at such nigligible amount