What is the Law for Income Tax to Show Accrued Rent in Tax Returns?
Q: Can a business show rent income on the accrual basis in his tax return even if he has not actually received the rent?
A: Samir, tough question. To be honest I am not quite sure. Tax rules differ from country to country. I know that in my home country (South Africa) a business could choose to do their tax returns on the accrual basis or cash basis. Not sure about India.
Anyone have more information on this for India or another country? If so please comment on this...