income frm house property

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Pravallika

Pravallika (Querist)
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18 March 2011 wat is the basic difference between unrealised rent n arrears of rent

CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (Expert)
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19 March 2011 Arrears of rent - It means that rent pertaining to prior years received in the current year. It could be due to reasons like "Increase in rent with retrospective effect"
Unrealized Rent - That u couldn't realize the Rent from ur tenant for reasons like absconding of tenant or any other reason..

Taxability :-

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.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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19 March 2011 Unrealise rent:_

Means the Rent which not able to realised by the landlord due to the default by the Tenant.

Subsequet realisation

It will be allowed a standard deduction of 30 % at the time of actual realisation.

Arrears Of rent

Means the increse in rent which may either as per Agreement or sudden increment and which is pending to realise from the tenant.

Taxability

Standard deduction can also be calimed if the arrears is received later years

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Pravallika

Pravallika (Querist)
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19 March 2011 thank you