Income under head house property ( unrealised rent )

Rohit (CA-Final) (1485 Points)

02 October 2012  

My Query is related to Unrealised Rent Under Income Tax Act,1961..

Suppose Expected Rent = `3,00,000 and Actual Rent = `30,000 per month.  Unrealised Rent was `1,20,000 .

 

Solution :

1. Expected Rent = `3,00,000 and Actual Rent = `3,60,000 -`1,20,000 = `2,40,000 [done as per Sec. 25A of ITA,1961]

2. Higher of Expected Rent and Actual Rent is `3,00,000 , So `3,00,000 will be Chargeable.

 

My Question: If you are charging `3,00,000 , then what is the benefit of giving deduction of unrealised rent (`1,20,000)