13 December 2013
Arrears of Rent........ Received : --------------------------------- This can be said as receipt of extra rental income. . Take it as if you are a land lord and Your request/threat for increase in rental charges of the earlier years has materialised. . It is always taxable. It is at par with the current rate as far as 30% standard deduction is concerned. . Unrealised Rent Received- ------------------------- This can be said as receipt out of bad debts. . Take it as if you are a land lord and Your follow up for recovery of earlier year's rental charges of a defaulter-tenant has materialised. . It is taxable only when earlier allowed as Unrealised Rent in the computational mechanism. Standard Deduction is not allowed. .
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