Section 25A of Income Tax Act for AY 2023-24

Section 25A of Income Tax Act amended by Finance Act 2022 and Income-tax Rules. Arrears of rent and unrealised rent received subsequently.

Amended and updated notes on section 25A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provision for arrears of rent and unrealised rent received subsequently.

Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 25A of IT Act 1961-2022 provides for special provision for arrears of rent and unrealised rent received subsequently.

Recently, we have discussed in detail section 25 (amounts not deductible from income from house property) of IT Act 1961. Today, we learn the provisions of section 25A of Income-tax Act 1961. The amended provision of section 25A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 25A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-25A: Special provision for arrears of rent and unrealised rent received subsequently

Section 25A(1) of Income Tax Act

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.

Section 25A(2) of Income Tax Act

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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