Question

what is Rent Element in taxation

Answer 1

All amount received as rent must be recorded in gross income column of tax return. rental incme is earned by providing prpoperty on rent for the purpose of residence or occupation. In addition to normal rent payment other unidentified income may be rental income and must be recorded in tax return. When you received rent for the period which is yet to be covered by rental agreement is called advance rent and must be be reported in tax return. Receipt of the security deposted must also be reported as rental income in tax return. Deductible rental expenses done by tenant must be deduct from rental income. If money is not received by some service is received instead of money then it must be included as the fair market value of the property or services in your rental income.