Tax on rent not received
3 years ago
The rent agreement for my commercial building expired on April end of this year. The tenant has not paid rent from March. He has also not renewed the rent agreement. The rent in expired agreement was 146000 per month.
I don't know how much rent he will pay this year. How should I calculate the advance income tax to be paid? If he pays me no rent, should I still pay tax, since rent is legally due from the tenant. He is not ready to sign fresh agreement or vacate.
Since rent income is taxed on accrual basis and not on cash accounting basis, is it not taxable, even if rent is not received in that financial year, especially if he does not vacate?
The tenant is required to vacate or renew the rental agreement because the agreement say so or else legal action could be initiated against him, also, a legal notice is to be sent
Ayantika Mondal @ Prime Legal
Responded 3 years ago
The legal notice could be sent to the tenant as he needs to vacate or renew because the agreement say so or else legal action can be taken against him or her.
You need not pay any tax in respect of rent which is not received by you. You may get issue a legal notice under Section 106 of Transfer of Property Act and initiate recovery of arrears of rent and file a suit for eviction.
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