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Unrealised rent recovered in case of House property

suresh keshav Baria (Article) (30 Points)

26 May 2010

hi,

I want to know about the tax treatment in case of un-realised rent recovered subsiquently

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harish sharma (student) (58 Points)
Replied 27 May 2010

SECTION 25A(when unrealised rent belongs to P.Y. 2001-02)

Special provision for cases where unrealised rent allowed as deduction is realised subsequently.

Where a deduction has been made under clause (x) of sub-section (1) of section 24 in the assessment for any year in respect of rent from property let to a tenant which the assessee cannot realise and subsequently during any previous year the assessee has realised any amount in respect of such rent, the amount so realised shall be deemed to be income chargeable under the head “Income from house property” and accordingly charged to income-tax (without making any as the income of that previous year, whether the assessee is the owner of that property in that year or not.

SECTION 25AA (when unrealised rent belongs to assessment year 2001-02)

Unrealised rent received subsequently to be charged to income-tax.

Where the assessee cannot realise rent from a property let to a tenant and subsequently the assessee has realised any amount in respect of such rent, the amount so realised which is not considered previosely shall be deemed to be income chargeable under the head “Income from house property” and accordingly charged to income-tax as the income of that previous year in which such rent is realised whether or not the assessee is the owner of that property in that previous year.

which is not considered previosely means gross mentainable rent will be recalulated and diff between previous GMR and now calculated GMR will be taxable as unrealised rent