AUBSP»Income Tax»Taxpayers»Section 25A of Income-tax Act 1961-2017 – Arrears of rent and unrealised rent received subsequently

Section 25A of Income-tax Act 1961-2017 – Arrears of rent and unrealised rent received subsequently

Detail analysis of the provisions of Section 25A (Special provision for arrears of rent and unrealised rent received subsequently) of Income-tax Act 1961 as amended by latest Finance Act 2017.

Chapter IV (Sections 14-59) of Income Tax Act, 1961 deals with provisions related to computation of total income. Section 25A of Income Tax Act 1961-2017 provides Special provision for arrears of rent and unrealised rent received subsequently.

(1) The amount of arrears of rent received from a tenant or the unrealised rent realised subsequently from a tenant, as the case may be, by an assessee shall be deemed to be the income from house property in respect of the financial year in which such rent is received or realised, and shall be included in the total income of the assessee under the head “Income from house property”, whether the assessee is the owner of the property or not in that financial year.
(2) A sum equal to thirty per cent of the arrears of rent or the unrealised rent referred to in sub-section (1) shall be allowed as deduction.

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Kamal
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Kamal

if there is loss under house property what is deduction of 25A of unrealised rent is 25000/-.

mudit
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mudit

still deduction will be 30% of unrealised rent i.e 7500.

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