Unrealised Rent - Query

No. Section 25AA. 30% deduction is not allowed for unrealised rent, now received for which u excluded from GAV earlier.

However, for arrears of rent, the 30% deduction can be claimed U/s 25B.

You will get flat 30% deduction only in case of Arrears of rent.(See section 25B)For unrealised rent there is no 30% deduction.

Yes 30% deduction is available only for arrears of rent and not for unrealisedrent recd.

30% Standard Deduction is available only for Arrears of Rent. But Unrealised Rent is taxable fully without 30% deduction .

 agree with deepika and subra

what is the difference between unrealised rent and arrears of rent????

ya.....agree with deepika and subra

Arrears means  - a debt that remains unpaid. and

Unrealised rent means. - failure to realize rent.

Rent which is unrealised is arrears na?? So arrears = unrealised rent right?

The logic behind this section is that 30% standard deduction is given only for arrears of rent as the standard deduction is available u/s 24(a) with respect to repairs. Unrealised rent is one where the tenant has vacated the property or steps have been taken to vacate the premises. Hence the need for repairs doesnt arise and no deduction available for unrealised rent.

hi friend

in my views if it has been charged as income then only its fully taxable otherwise it should got exemption

Unrealised Rent- If any amount of rent is not capable of being realised, then such portion of rent shall not be included in computing the sctual rent received or receivable.

Arrears of Rent Received- The assessee may have sought enhancement of rent from the tenant and the same could be in dispute. Subsequently as and when the additional rent is realised the same is liable to tax as arrears of rent received.

In both the above cases, even if the assessee is not the owner of the house property, it is chargeable under the head Income from House Property.