Circular No. 3/2012 — Vacancy allowance and unrealised rent

Date: 2012-01-01 Status: ACTIVE Category: Income from House Property Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)

Summary

Treatment of vacancy allowance and unrealised rent in computation of income from house property.

Key Directions

  1. Vacancy allowance where property remained vacant for part of the year.
  2. Unrealised rent deductible subject to prescribed conditions.
  3. Conditions: tenancy bona fide, steps taken for recovery, not undischarged insolvent.

Applicability Under IT Act 2025

Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.

Old Section (1961 Act)New Section (2025 Act)Consistent?
23(1)22Yes
25AA23Yes

Cross-References

Act Sections

  • Section 23(1)
  • Section 25AA
  • Section 22
  • Section 23
  • None identified

Key Case Law (Circular Supremacy)

  • To be populated — cases where this circular was cited/applied

Full Text

Full text to be added — see raw/circulars/ for PDF when available

Source