Unrealize rent

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Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 please explain me concept unrealize rent.......i dont understand .please explain me in simple language

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 June 2013 Unrealised rent is the rent which is unable to recover by the house owner from the tenant in simple terms

under income tax the following conditions need to be satisfied for claiming unrealised rent

he unrealisable rent subject to satisfaction of conditions prescribed under Rule 4. Amount of unrealised rent shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where,—

the tenancy is bona fide

the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property

the defaulting tenant is not in occupation of any other property of the assessee

the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.

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