Income Tax on Advance Rent

Page no : 2

RAJEEV (article) (156 Points)
Replied 25 June 2011

i think income tax act not defined about advance reciept of rent.

Upgrade to CAclubindia Pro. Subscribe Now!

pawar (Accountant) (32 Points)
Replied 25 June 2011

adavnce rent received it is taxable whatever u earn or receivce above limit it is taxable.

CA Rajesh Saroj (B.Com A.C.A. C.S. LL.B. 2nd Year) (89 Points)
Replied 25 June 2011

Yes, it is taxable

amruta (student) (61 Points)
Replied 26 June 2011

Correct, Taxable

sandesh (Articles) (53 Points)
Replied 27 June 2011

I agree with kaushal sir & I have take help on this point from my friend , he is from E & Y.

He said " Advance rent Can't be rent received or reciveable of the year of receipt ".

Look at cocept of Received or receivable in accounting Cpt Book.

Thanks & Regards

Sandesh Jadhav

Upgrade to CAclubindia Pro. Subscribe Now!

Ravinder Chauhan (Manager Finance) (21 Points)
Replied 27 June 2011

Dear All,

Just advise if tds deducted on advance rent than

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 29 June 2011

Originally posted by : kamal kishor sen
	U/S SECTION 23 RENT RECEIVED OR RECEIVABLE , THE WORD RECEIVED INCLUDES ADVANCE RENT ALSO BUT WAIT EXPERT COMMENTS.

yes friend's rent received/receivable does not include advanced rent , i read it in v.k. singhania

deepak kumar srivastava (na) (281 Points)
Replied 12 July 2011

THE CHARGING SEC OF HOUSE PROPERTY INCOME IS SEC-22

THE LANGUAGE OF SEC-22 :-

THE ANNUAL VALUE OF PROPERTY SHALL BE CHARGEABLE TO INCOME TAX .

MEANING OF ANNUAL VALUE IN SEC-23 WHICH SAYS ANNUAL VALUE IS :-

1.THE SUM FOR WHICH THE PROPERTY MIGHT REASONABLY BE EXPECTED TO LET FROM YEAR TO YEAR i.e lower among municipal annual value and standard rent p.a

2.THE ACTUAL RENT RECIEVED OR RECIEVABLE IF THE PROPERTY IS A LET OUT PROPERTY

WHICHEVER IS HIGHER

NOW THE MAIN POINT IS WHAT IS THE MEANING OF WORD RECIEVED OR RECIEVABLE:-

IT DEPENDS UPON THE METHOD OF ACCOUNTING REGULARLY FOLLOWED BY THE ASSESSE

SAY U HAVE RECIEVED RANT OF 14 MONTHS DURING P.Y 210-2011

1. IF CASH BASIS ACCOUNTING -----ACTUAL RENT RECIEVED = RENT OF 14 MONTHS

2 . IF ACCRUAL BASIS OF ACCOUNTING------------------ ACTUAL RENT RECIEVABLE= RENT OF 12 MONTHS ONLY IF PROPETY IS LET OUT THROUGHOUT THE WHOLE 12 MONTHS

1 Like

C R RADHAKRISHNAN (ACCOUNTANT) (210 Points)
Replied 24 August 2017

SUPPOSE WE RECED ADVANCE FOR MANDAPAM BOOKING IS IT TAXABLE AT THE TIME OF BOOKING. PLEASE CONFIRM FOR E.G WE RECEIVED RS.70000/- AS ADVANCE HOW MUCH WE PAY GST AT THE TIME OF BOOKING