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arrears of rent

Tania Sharma (something) (96 Points)

21 January 2011

in which slab rate will arrears of rent of house property be taxed, if rent is received after a number of years? the slab rate of the year in which it is received or the slab rate of the year in which it should have been received. also 70% will be taxable?

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Karan Teli (Life Is just an Illusion...!!) (4573 Points)
Replied 21 January 2011

The above is the case of Unrealised rent and it is guided by SEC-25A and SEC-25AA

SEC 25A says that "if the URR is for the period of AY 2001-02 and earlier to this period and if the deduction of such URR is made in that particular year of Unrealisation then the income received in the subsequent years is chargeable to tax in the year of receipt irrespective of the ownership of property with the receiver of rent...." (no deductions under section 23 shall be given)

SEC 25AA says that "if the URR is for the period of AY 2001-02 and after this period and if the deduction of such URR is made in that particular year of Unrealisation then the income received in the subsequent years is chargeable to tax in the year of receipt irrespective of the ownership of property with the receiver of rent...."

It is absurd in dividing the sections since same rules apply in both., but this query is answered by sticking to the provisions of the ACT

The income shall be included in the GTI and then charged to tax and section 24 applies if it was not applicable earlier...