- Meaning: Arrears of rent means the incremental rent relating to earlier financial years which has not been offered to tax in those financial years itself, but received during the current financial year.
- Chargeability: Receipt of arrears of rent will be chargeable to tax under the head income from house property only.
- Year of taxability: It is taxable as income of the financial year in which he receives the arrears of rent.
- Non-subsistence of ownership: It is taxable in the hands of the individual even if he does not own the property at the receipt of arrears of rent.
- Deduction: A standard deduction of 30% of the amount arrears received will be allowed as deduction.
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