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Rent on Heavy deposit

mohammad tarique sohail (accountant) (195 Points)

28 November 2018

I have given my premises on rent of heavy deposit of Rs. 8lacs , and getting on rent Rs. 1000/-. so I have to pay tax income on rent Rs.12000/- . or any criteria on heavy deposit. refer section on heavy deposit. pls.

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7 Replies

Nivedita (SME - Finance) (758 Points)
Replied 28 November 2018

Heavy deposit - Means what ..? Received or paid How much are you receiving as rent?

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mohammad tarique sohail (accountant) (195 Points)
Replied 28 November 2018

I have received 8 lacs as a security deposit. getting rent 12000/-

Nivedita (SME - Finance) (758 Points)
Replied 28 November 2018

No tax implications - Security deposit

Nivedita (SME - Finance) (758 Points)
Replied 28 November 2018

Provided it is paid back & not adjusted against rentals .. Best would be if the Rent agreement states such amount clearly with terms etc

mohammad tarique sohail (accountant) (195 Points)
Replied 28 November 2018

I am getting nominal rent 1000 per month,should it be circle rate/municipal rate prescribed on area/location.

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mohammad tarique sohail (accountant) (195 Points)
Replied 28 November 2018

I am asking about rent . Iam getting nominal rent 1000 per month,should it be circle rate/municipal rate prescribed on area/location.

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 30 November 2018

You have actually rented your property

normally rules mentioned by you are applicable to deemed to be letout, but you have to prove (through rent agreement) about real rent which you have received i.e. only 1000/- p.m. if AO requires so

Normally logic is that as you have received such huge amont of deposit of Rs. 8 lakhs then and only you have rented at such nigligible amount