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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

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.
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