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Arrears of Rent Received – Section 25B

From financial year 2016-17 section 25B is merged into section 25A.

Provisions till financial year 2015-16

If an assesse receives any amount on account of arrears of rent which is not charged to tax in any previous years, then the amount so received after deducting 30% as standard deduction under section 24a is taxable in the year of receipt.

Such amount is taxable whether the assesse is the owner of the that property in the year of receipt  or not.

 

About Rohit Pithisaria

I am a Practising Chartered Accountant based in Jaipur, Rajasthan. Co-founder of TaxAdda.com and been in practice for more than 5 years. Have expertise in Income Tax and rendered our services to more than 2000 clients.
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