What is tax rate for arrears?

Forums General Discussion What is tax rate for arrears?

What is tax rate for arrears?

Can you please explain me how are arrears of rent taxed?

Profile photo of Sharvari Jawale Asked By: Sharvari Jawale 2 replies 1 helpful answers Last Updated: 2 months ago
  • Profile photo of Sharvari JawaleSharvari Jawale
    Participant

    Can you please explain me how are arrears of rent taxed?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    The amount received on account of arrears of rent (not charged to tax earlier) will be charged to tax after deducting a sum equal to 30% of such arrears. It is charged to tax in the year in which it is received. Such amount is charged to tax whether or not the taxpayer owns the property in the year of receipt.

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    Any amount received as arrears of rent on or after 01.04.2000, not charged to income-tax for any earlier PY, then amount so received after allowing deduction of 30% of such amount, will be taxable under the head Income from House Property in the year in which rent is received, irrespective of the fact whether the assessee is the owner of that property or not.

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