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Unrealised Rent and Arrears of Rent – Section 25A

From Financial year 2016-17, section 25AA and 25B has been merged into section 25A.

As per new provisions the amount of rent received in arrears the amount of unrealised rent realised subsequently by an assessee shall be charged to income tax in the financial year in which such rent is received or realised, whether the assessess is the owner of the property or not in that financial year. Also thirty percent of the arrears of rent or unrealised rent realised subsequently by the assessee shall be allowed as deduction.

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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