18 August 2012
MY CLIENT BEING A PRIVATE LIMITED COMPANY HAD PAID INCOME TAX ON RENT LAST YEAR BUT NOW THEIR IS NO POSSIBILITY TO RECEIVE ANY AMOUNT FROM TENANT, IS THEIR ANY DEDUCTION AVAILABLE? SO PLEASE SUGGEST ME AS EARLY AS POSSIBLE.
19 August 2012
Yes, it can be deducted as Unrealized rent U/s 23(1) provided fulfillment of 4 conditions laid down in the sactions and AO satified with the same. You will get the refund of addtional tax paid on account of Rent receivable.
CAclubindia
