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CA Pratik Dharod (Bussiness) (178 Points)

11 August 2010

INCOME FROM HOUSE PROPERTY

What is the difference between unrealised rent & arrears of rent?

Why we take 30% standard deduction in only arrears of rent & not for unrealised rent?

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7 Replies

(Guest)

UNREASLISED RENT MEANS RENT NOT RECEIVED...

ARREARS OF RENT MEANS RENT YET TO RECEIVABLE....

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NUKUL GARG (Senior Associate Consultant) (1231 Points)
Replied 11 August 2010

in case of unrealised standard deduction of 30% is taken when it is received.

i.e, if any unrealised rent is received after a period then 30% is deducted from it.

(Guest)

Why we take 30% standard deduction in only arrears of rent & not for unrealised rent?

On acrual basis Arrears of rent is treated as income from house property... hence it is taxable so 30% of standard decuction is eligible.. Unrealisable rent is not included in annual value as income from house property, hence standard deduction is also not applicable..

NUKUL GARG (Senior Associate Consultant) (1231 Points)
Replied 11 August 2010

in case of arrears of rent received shall be deemed to be income of the year in which such rent is received after deducting 30%.

on unrealised rent- first it shall be deducted from GAV and then 30% is deducted

and if any recovery of unrealised rent then 30% of deduction shall be allowed from such recovery.

G!rdhar! Jang!d (Tax Consultants ) (680 Points)
Replied 11 August 2010

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(Guest)

Originally posted by : Nukul Garg
	in case of arrears of rent received shall be deemed to be income of the year in which such rent is received after deducting 30%. on unrealised rent- first it shall be deducted from GAV and then 30% is deducted and if any recovery of unrealised rent then 30% of deduction shall be allowed from such recovery.