The provisions of rent arrears described under section 25B of Income Tax Act, 1961. The section 25B exclusively deals with assessing conditions of arrears of rent received in the current financial year.

Where the assessee is the owner of any property consisting of any building or land appurtenant thereto which has been let to a tenant and he has received any amount, by way of arrears of rent from such property, not charged to income-tax for any previous year, the amount so received on or after 01.04.2000 shall be chargeable to tax under the head “Income from House Property” in the year of its receipt irrespective of the fact that the recipient of the rent continued to be the owner of the property in the year of receipt or not. However, deduction from annual value to the extent of 30% shall be available from such rent.

Thus, any amount received as arrears of rent from a property consisting of any building or land appurtenant thereto which has not been charged to income tax in any previous year shall be taxable in the previous year in which the same is received.

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