Manish Trivedi (CA-Final Student) (42 Points)
24 June 2011
Whether Advance Rent Received From a Party Is Taxable Under Head Income From House Property in The Same Assessment Year in which it is received. If Yes, Then Under Which Section It is Mentioned .
kamal kishor sen
(STUDENT Rajasthan)
(2156 Points)
Replied 24 June 2011
U/S SECTION 23
RENT RECEIVED OR RECEIVABLE , THE WORD RECEIVED INCLUDES ADVANCE RENT ALSO
BUT WAIT EXPERT COMMENTS.
Divya K S
(CA)
(289 Points)
Replied 24 June 2011
Agree. Rent Received includes Advance rent also & hence taxable.
Anvesh Desai
(Chartered Accountant)
(156 Points)
Replied 24 June 2011
of course its taxable.... Under income tax act, we always follow accrual concept to decide the
taxability of an income i.e. income are taxable on acrual basis...
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 24 June 2011
Yes agree with all..
U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt..
Aparna Raja K.C
(Student)
(520 Points)
Replied 24 June 2011
| Originally posted by : Siddharth Bumb | ||
 |
U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt.. |
 |
Agree .. :)
PRADEEP REDDY
(CHARTERED ACCOUNTANT)
(664 Points)
Replied 24 June 2011
| Originally posted by : Siddharth Bumb | ||
 |
U/S 23 of income tax act, it says that if you are receiving advance rent then it will be chargable to tax n the year of receipt.. |
 |
Agree .. :)
Friends.
You are all interpreting it wrong.
1. Income under the head house property is computed on annual value basis.
2. Actual rent is rent received or receivable. Rent can be maximum of 12 months. Not more than 12 months.
Rent is receivable onlyif the property is let out. Suppose the property is let out for 12 months then rent receivable can only of 12 months.
Therefore advance rent is taxable not in the year of receipt but of the FY of which it belongs.
Happy to help
thanks
prakash
(article)
(222 Points)
Replied 24 June 2011
U/S 23 of income tax act, it says that if you are receiving advance rent then it will be char gable to tax n the year of receipt.. Agree with all
CA Gaurav Jain
(Charterted Accountant)
(156 Points)
Replied 25 June 2011
Sumiti Jain
(FP)
(1364 Points)
Replied 25 June 2011
I think Rental income will be Year to year basis & Mr. Kaushal is right.
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 25 June 2011
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