Income from House Property- Un realised rent Section 23(1) of
Income Tax Act
Rule 4 of Income Tax Rules 1962 defines treatment of unrealised
rent of income from house property.
Provisions in Income Tax Rules 1962 related to Rule 4 is as
under:
Unrealised rent.
4. For the purposes of the Explanation below sub-section (1) of
section 23, the amount of rent which the owner cannot realise
shall be equal to the amount of rent payable but not paid by a
tenant of the assessee and so proved to be lost and
irrecoverable where,-
(a) the tenancy is bona fide;
(b) the defaulting tenant has vacated, or steps have been taken
to compel him to vacate the property;
(c) the defaulting tenant is not in occupation of any other
property of the assessee;
(d) the assessee has taken all reasonable steps to institute
legal proceedings for the recovery of the unpaid rent or
satisfies the Assessing Officer that legal proceedings would be
useless.
Rule 1 of Income Tax Rule 1962 - Short Title and Commencement
Rule 2 of Income Tax Rule 1962 - Definitions of Income Tax Rules
Rule 2A Limits for the Purposes of Salary income Income Tax Rules 1962
Rule 3 Valuation of Perquisites to employees and Tax on Perquisites: Rule 3 of Income Tax Rules 1962
Rule 4 Unrealized rent of Income from House Property: Rule 4 of Income Tax Rules 1962
Rule 5AA Prescribed authority for Investment Allowance: Rule 5AA of Income Tax Rules 1962