Income from rent for vacant period

1747 views 4 replies

VIRENDER SINGH GUSAIN

ACCOUNTS EXECUTIVE

46 Points Joined July 2012

Dear Sir,

I have a property, which was let out for rent. during the financial year 2011-2012 (A.Y.2012-2013), I got rent as follows :

MARCH-11 - RS.11,000/_

APRIL 11- VACANT (NIL)

MAY 11 - VACANT (NIL)

JUNE-11 - RS.14500

JULY-11 - RS.14500

MARCH-12 - RS.14500

I want to know

whether I have to show income from house property is NIL for the period of April 2011 & May 2011

I have to show income from the house property is Rs.11,000 for the period of April 2011 & May 2011

I have to show income from the house property is Rs.14,500 for the period of April 2011 & May 2011

Please suggest

With regards

virender singh gusain

Replies (4)

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Joined February 2011

When the property is vacant, the notional rent is treated as rental income.

As such, i think 14500 shall be the notional income as there was a change in the rent w.e.f. 01.04.2011.

Ganeshbabu K

Audit and Tax Advisory

48564 Points Joined May 2012

IF ANY AMOUNT OF RENT IS NOT CAPABLE OF BEING REALISED,THEN SUCH PORTION OF RENT SHALL NOT BE INCLUDED IN COMPUTING THE ACTUAL RENT RECEIVED OR RECEIVABLE. EXCLUSION OF UNREALISED RENT IS PERMISSIBLE IF CONDITIONS PRESCRIBED UNDER RULE 4 ARE SATISFIED,

Yajendra Adhikari

Chartered Accountant

334 Points Joined April 2009

If u wanted to give your property in rent but it lay vacant despite of that, then there will be no notional rent in this case. So, Total Income from House Property for FY 2011-12 will be 14500*10 = 145000.