House Property
This query is : Resolved
19 June 2016
Dear Sir,
I had rented my own property 5 years back.The terms were such were I used to receive rent for the period from april 14to march 15 in advance in march 14..and so on.But in this march I didnt receive any rent since tenure has ended.How should I tax my rent..if in the prior years I have taxed rent on receipt basis?
19 June 2016
Yes you have to count your income in receiving year if you received rent in advance and if you forgot to add income then you can take as accrued income and file income tax return. Important is to disclosed your HP income for the Financial year 2014-15.
19 June 2016
Sir,I received rent of FY 2015-16 in the month of March 2015..Hence,while filing the return for FY 2014-15 I taxed that rent as income received in advance.Now since the property is not going to be let out in FY 2016-17,I have not received any rent in march 2016.So,what would suggest me to do?
19 June 2016
I Suggest you to add rent income to the F.Y which belongs to, means if you received rent advance for F.Y 2015-16 in F.Y 2014-15 then also you have to add that amount in F.Y. 2015-16. it better to give the right effect in right year. if you received 5 Years advance then you will have to pay big amount of tax due to received in advance but to bifurcate that amount in 5 Years you can save not only tax but also your rent income will be right one.
19 June 2016
Give effect on accrued basic. Every year you have to add rent income after completion of F.Y. not at the time of receiving amount as advance.
19 June 2016
Completely agreed Sir,but presently the facts are that the return for FY 14-15 is filed taxing Fy 2015-16 rent income as rent in advance.Now I havn't received any rent in Fy 2015-16.Taxation of rent of Fy 2015-16 has been already done in Fy 2014-15.My question is since the property was let out in FY 2015-16 ,how will I compute rental income?
19 June 2016
If you have filed your return of F.Y. 2014-15 and add rent income of F.Y 2015-16 as advance basis. then ok for that but now as I advised above you need to book the income as accrued basis from F.Y. 2016-17. No need to count income in F.Y. 2015-16 because you have already added in F.Y 2014-15 and From F.Y. 2016-17 you have to add income accrued basis and if vacant then no rent income need to be disclosed in return.
21 June 2016
Always Welcome....!!!
21 June 2016
Thanks to you...for raising query to help others to understand and find a solution without asking a query like yours....!!!
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