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Treatment of rent received in accounts.

Mahesh Kapadia (184 Points)

03 June 2020

Rent received from shop let-out.
Please help me to give treatment.

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9 Replies

shadab shaikh (133 Points)
Replied 03 June 2020

Bank A/C Dr
To Rent(profit and loss account) cr
(being received from shop let out)

Mahesh Kapadia (184 Points)
Replied 03 June 2020

OK sir but can I show like............
Bank A/c Dr.
To proprietor capital A/c
Means my profit and loss account only show my professional income which is directly utilized to show in ITR. Please help me can I do so

shadab shaikh (133 Points)
Replied 03 June 2020

You Can do it but Rent will be considered as an introduction of capital in your business of professional services
but you need to pay tax on rent under house property

1 Like

Mahesh Kapadia (184 Points)
Replied 03 June 2020

OK thanks sir then what is advisable treatment also guide me to adjust bank interest

Mahesh Kapadia (184 Points)
Replied 03 June 2020

No interest received from bank

shadab shaikh (133 Points)
Replied 03 June 2020

The same way
Bank a/c
To Intrest

Intrest A/c dr
to capital A/c

but make sure you need to pay tax under IFOS

Mahesh Kapadia (184 Points)
Replied 03 June 2020

Thanks a lot sir. But let me know which is advisable

Bank A/C Dr
To Rent(profit and loss account) cr
(being received from shop let out)
Or
Bank A/c Dr.
To proprietor capital A/c