I have received arrears of rent in the month of March, 2021 but I have sold the property in the month of January 2020. What will be the treatment of such amount in my Income Tax Return since I was not the owner of the property when I received it?
Amount received as arrears of rent after allowing deduction of 30% of such amount, will be taxable under the head “Income from House Property”. Provided, , the amount should not be charged to income-tax for any PY (earlier years).
Further, arrears of rent shall be chargeable to tax in the previous year in which it is received. Whether the property is owned by the assessee in the year of receipt or not.
So the amount that you received shall be chargeable to tax for the FY 2020-21under the head income from house property.
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