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CS Executive · Tax Laws and Practice · Income under the Head House Property

Ms. Deepa Iyer received Rs. 80,000 as arrears of rent from a tenant in a tax year when she no longer owns the property. Under section 23 of the Income-tax Act, 2025, what amount is taxable under house property?

Rs. 56,000 is taxable. Arrears of rent are chargeable as house property income in the year received even if the assessee is no longer the owner, and a deduction of 30% (Rs. 24,000) is allowed from the Rs. 80,000 received.

  1. ARs. 80,000
  2. BRs. 56,000Correct
  3. CNil, because she is not the owner
  4. DRs. 24,000

Explanation

Arrears of rent are taxed in the year of receipt, whether or not the assessee still owns the property. A deduction of 30% (Rs. 24,000) is allowed. Taxable = 80,000 - 24,000 = 56,000. Nil is wrong because ownership in that year is irrelevant.

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