Rent,Repairs,Insurance etc. – Section 30

The following expenses are allowed as deduction from income of Business or Profession:-
+ Amount spent on repairs to the premises.
+ Amount paid for land revenue, local rates and municipal taxes subject to Section 43B.
+ Insurance Premium paid for covering risk of damage of premises.
+ Rent paid for the premises.
+ Amount spend on repairs by tenant is allowable as deduction to the tenant.

Notes:- If any amount is incurred as capital expenditure, then it is not allowed as deduction. But depreciation can be claimed on such amount.
If capital expenditure is incurred by tenant, then depreciation is allowed to tenant only.
If expenditure incurred or asset used partly for business and partly for other purpose, the only proportionate amount is allowed as deduction. [ Section 38 ]

Rohit Pithisaria

Rohit Pithisaria

I am a Chartered Accountant based in Jaipur (Rajasthan). Started TaxAdda in 2011 as a blog and now providing various services related to GST and Income Tax to the client all over India.

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