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 Recovery of unrealised rent

Recovery of unrealised rent




Unrealisedrent belonging to the period prior to previous year 2001-02 [Sec.25A]

Unrealisedrent belonging to the previous year 2001-02 onwards. [Sec.25AA]

When unrealised rent or part thereof, which was allowed as deduction previously (prior to P.Y.2001-02) and is subsequently realised, then the amount so realized would be chargeable to tax under the head Income from house property without making anydeduction either u/s 23 or u/s 24

When any unrealised rent or part thereof is subsequently realised, then such realized amount shall be chargeable to tax under the head Income from house property to the extent such amount together with the actual rent receivable (ARR) of the previous year to which it relates, exceeds GAV of that year.

Taxable amount shall be positive value of:

[Recovery of Unrealised Rent (Earlier Deduction Claimed Earlier Deduction Allowed)]

Taxable amount shall be positive value of:

[{Recovery of Unrealised Rent + (Actual Rent Receivable - Unrealised Rent)#} - Gross Annual Value#]

# For the previous year to which such unrealised rent relates.

  1. The aforesaid amount is taxable in the previous year in which it is recovered.

  2. It is taxable under the head Income from house property even if the assessee does not own any house in the year of recovery.

  3. From such amount no deduction shall be allowed. Even recovery expenditure is not allowed as deduction from such realisation.