Mr. Lucky Ali owns a house property let out since 1/4/2014 to a school for monthly rent of 10,000. There was no change in rent till 31/3/2018. On 1/4/2018, as per court decision rent was increased to 12,000 p.m. with retrospective effect from 1/4/2016 and duly paid by school in the same year. Legal expenditure for such suit has been incurred by Mr. Ali 30,000. Discuss tax treatment u/s 25A. s24 Arrears rent belongs to the period 1/4/2016 to 31/3/2018 i.e., for 24 months. Arrears rent received = 2,000 x 24 months = 48.000 Such rent is taxable in the year of receipt as under: Particulars Amount Arrears of rent received 48,000 Less: Standard deduction u/s 24(a) equal to 30% of such rent 14.400 33,600 Income from house property W/s 25A Note: Legal expenditure is not deductible. Illustration Mr. Krishnan constructed one house in 2016. Half of the portion is let out and the remaining half is used for his residence, particulars are available. 12500 Municipal value Rent received 10000 Municipal tax 2500 Ground rent 250 Repairs 2000 Interest on loan taken for construction 2500 Compute his income from house property for the AY 2019-20