Changes in Taxation of Arrears of Rent and Unrealised Rent: Clause 23 of Income Tax Bill, 2025, with Section 25A of Income-tax Act, 1961

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....Clause 23 of Income Tax Bill, 2025, aims to modify the existing provisions u/s 25A of the Income-tax Act, 1961, regarding the taxation of arrears of rent and unrealised rent received subsequently. This analysis examines the key changes and their implications. 2. Structural Changes 2.1 Title Modification * Existing: "Special provision for arrears of rent and unrealised rent received subsequentl....

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....pt/realization * Applicability regardless of current ownership status * 30% standard deduction 5. Notable Differences 5.1 Language Simplification * The new clause uses more straightforward language * Removes redundant phrases like "as the case may be" * Eliminates historical references and previous amendments 5.2 Structural Clarity * Separate sub-section for inclusion in total incom....