Home > Income Tax > House Property > Arrears of Rent Received – Sec 25B

Arrears of Rent Received – Sec 25B

U.C Date : 25 Apr 2016

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.

Bare Act for Sec 25B

Bare Act for Sec 25B

Where the assessee—

(a) is the owner of any property consisting of any buildings or lands appurtenant thereto which has been let to a tenant; and

(b) has received any amount, by way of arrears of rent from such property, not charged to income-tax for any previous year,

the amount so received, after deducting [a sum equal to thirty per cent of such amount], shall be deemed to be the 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 received, whether the assessee is the owner of that property in that year or not.]

Leave a Reply

Your email address will not be published. Required fields are marked *

Get updates and weekly newsletter in your email. Join more than 10,000 subscribers !