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Rule 4 Unrealized rent of Income from House Property: Rule 4 of Income Tax Rules 1962

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.
 

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