Treatment of advance/security deposits !!!

This query is : Resolved

Abhishek Kumar (Querist)
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02 April 2014 Dear Experts,

I would like to know what will be the Taxation treatment in the hands of Landlord for initial "Security Money" received from a Tenant..It will be refundable later on when the tenant vacates.

Pls guide me in details.

Thank You.

PRATIK AGRAWAL

PRATIK AGRAWAL (Expert)
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04 April 2014 Income tax is levied only on the Income or we can take a sett off against Expenses Incurred.

Rent deposit is neither a Income in which tax is to be levied nor an expenditure where tax benefit can be claimed.

Accordingly no Treatment for this Transaction under Income TAx