Applicability
Where the assessee -  

• is the owner of the house property which has been let out to a tenant; and

• has received any amount by way of arrears of rent (like enhancement in rent with retrospective effect) from such property, not charged to income tax in any previous year.

Tax Treatment  

The amount so received to the extent such amount together with the Actual rent receivable (ARR) of the previous year to which it relates, exceeds GAV of that year, shall be taxable under the head Income from house property' in the year of receipt. From such amount a further deduction of 30% shall be allowed as standard deduction.

In short, taxable amount shall be positive value of -  

70% * [{Recovery of Arrear Rent + (Actual Rent Receivable - Unrealised Rent)^#} - Gross Annual Value^#]

# For the previous year for which such arrears rent pertain.