What is the Special provision for cases where unrealised rent allowed as deduction is realised subsequently? Is Unrealised rent received subsequently to be charged to income-tax? Section 25A and 25AA of Income Tax Act 1961

Special provision for cases where unrealised rent allowed as deduction is realised subsequently and Unrealised rent received subsequently to be charged to income-tax are defined under section 25A and 25AA of Income Tax Act 1961. Provisions under these sections are:

Section 25A of Income Tax Act "Special provision for cases where unrealised rent allowed as deduction is realised subsequently"

25A. Where a deduction has been made under clause (x) of sub-section (1) of section 24 as it stood immediately before its substitution by the Finance Act, 2001 in the assessment for any year in respect of rent from property let to a tenant which the assessee cannot realise and subsequently during any previous year the assessee has realised any amount in respect of such rent, the amount so realised shall be deemed to be income chargeable under the head "Income from house property" and accordingly charged to income-tax (without making any deduction under section 23 or section 24 as it stood immediately before its substitution by the Finance Act, 2001) as the income of that previous year, whether the assessee is the owner of that property in that year or not.

 

Section 25AA of Income Tax Act "Unrealised rent received subsequently to be charged to income-tax"

25AA. Where the assessee cannot realise rent from a property let to a tenant and subsequently the assessee has realised any amount in respect of such rent, the amount so realised shall be deemed to be income chargeable under the head "Income from house property" and accordingly charged to income-tax as the income of that previous year in which such rent is realised whether or not the assessee is the owner of that property in that previous year.

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