Section 25A → Section 28
Special provision for arrears of rent and unrealised rent received subsequently
Quick Answer
Section 25A of the Income Tax Act, 1961 (Special provision for arrears of rent and unrealised rent received subsequently) corresponds to Section 28 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 25A
The starting point is Section 25A of the Income Tax Act, 1961 — special provision for arrears of rent and unrealised rent received subsequently. Arrears of rent or unrealized rent received later is taxable in the year of receipt, allowing a flat 30% deduction.
The new code maps this to Section 28: the provision is retained and renumbered as Section 28 of the Income-tax Act, 2025, applying from 1st April 2026. Retained to ensure delayed rental receipts are brought to tax smoothly without reopening past assessments.
On the ground, changes to Section 25A carry a Medium impact. Standardizes taxation for ongoing tenant disputes.
Sec 25A
Provision Summary
Arrears of rent or unrealized rent received later is taxable in the year of receipt, allowing a flat 30% deduction.
Sec 28
Provision Summary
Retained to ensure delayed rental receipts are brought to tax smoothly without reopening past assessments.
Key Changes & Highlights
- No major changes. 30% standard deduction remains intact on such arrears.
Related Sections
Frequently Asked Questions
What does Section 25A of the Income Tax Act 1961 deal with?
Section 25A of the Income Tax Act, 1961 covers special provision for arrears of rent and unrealised rent received subsequently. Arrears of rent or unrealized rent received later is taxable in the year of receipt, allowing a flat 30% deduction.
Where does Section 25A of the ITA 1961 go under the Income-tax Act, 2025?
Section 25A of the Income Tax Act, 1961 maps to Section 28 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained to ensure delayed rental receipts are brought to tax smoothly without reopening past assessments.
Why does the change to Section 25A matter for taxpayers?
The transition impact for Section 25A is rated Medium. Standardizes taxation for ongoing tenant disputes.
Disclaimer: This mapping of Section 25A (Special provision for arrears of rent and unrealised rent received subsequently) to Section 28 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 25A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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