What is the Special provision for arrears of rent received? What is the treatment of Property owned by co-owners? Section 25B and 26 of Income Tax Act 1961

Special provision for arrears of rent received and Property owned by co-owners are defined under section 25B and 26 of Income Tax Act 1961. Provisions under these sections are:

Section 25B of Income Tax Act "Special provision for arrears of rent received"

25B. Where the assessee-

(a) is the owner of any property consisting of any build­ings or lands appurtenant thereto which has been let to a tenant; and

(b) 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, after deducting a sum equal to one-fourth of such amount for repairs of, and collection of rent from, the property, shall be deemed to be the income chargeable under the head "Income from house property" and accordingly charged to income-tax as the income of that previous year in which such rent is received, whether the assessee is the owner of that property in that year or not.

 

Section 26 of Income Tax Act "Property owned by co-owners"

26. Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income.

Explanation. - For the purposes of this section, in applying the provisions of sub-section (2) of section 23 for computing the share of each such person as is referred to in this section, such share shall be computed, as if each such person is individually entitled to the relief provided in that sub-section.