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Is the tax payable on arrears of rent realised?

Is the tax payable on arrears of rent realised?

Is the tax payable on arrears of rent realised?

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Jeeba Lal Jun. 27, 2018

Yes,
If you received arrears of rent from your tenant, it will be treated as income from house property and tax is calculated accordingly.

As per the section 25A, the amount of arrears of rent received from a tenant or the unrealised rent realised subsequently from a tenant shall be deemed to be the income from house property in respect of the financial year in which such rent is received or realised, and shall be included in the total income of the assessee under the head Income from house property.

Further, you will get the deduction of a sum equal to thirty per cent of the arrears of rent or the unrealised rent.

Is the tax payable on arrears of rent realised?

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