Advance rent

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2011 whether advance rent is taxable in the year in which it is received?

CA Navin Jain

CA Navin Jain (Expert)
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28 July 2011 it will be taxable in the related year of the rent

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 July 2011 No. The reason is given here under.
a) Income under the head house property is computed on annual value basis.
b) Actual rent is rent received or receivable. Rent can be maximum of 12 months. Not more than 12 months.
c)Rent is receivable only if the property is let out. Suppose the property is let out for 12 months then rent receivable can only of 12 months.
Therefore, advance rent is taxable not in the year of receipt but in the financial year to which it belongs.

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