Rule 4 - Unrealised rent - Income-tax Rules, 1962

B. Income from house property Unrealised rent. 4. For the purposes of the Explanation below sub-section (1) of section 23, the amount of rent which the owner cannot realise shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where, ( a ) the tenancy is bona fide; ( b ) the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property; ( c ) the defaulting tenant is not in occupation of any other property of the assessee; ( d ) the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.