In the current financial year, I have received rent from the previous period. Will it be subject to taxation this year?

February 20, 2024 13:21

Yes. Any unrealized rent from previous periods, when realized, will be taxable in the year of realization (whether or not you are currently the owner of that property). This is because unrealized rent is allowed to be excluded from the taxable income of the relevant Financial Year in which the rent was originally due.

30% of such unrealized rent is allowed as a standard deduction.

Taxable amount = Unrealized rent (-) 30% of unrealized rent.

Related to