RECOVERY OF UNREALISED RENT

1. Chargeability: Recovery of Unrealized Rent is chargeable to tax as “Income from House Property”.
2. Year of Taxability: Unrealized Rent recovered is taxable in the financial year in which it is recovered.
3. Non-Subsistence of Ownership: It will be taxable in the hands of Individual even if he does not own the
property to which such rent pertains.
4. Deduction: No deduction will be allowed against such receipt

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