Deductions which are allowable in respect of rent, rates, taxes, repairs and insurance for premises, which are used for the purpose of business or profession

S 30: The deductions that are allowed while computing income from 'profits and gains from business or profession' in respect of rent, rates, taxes, repairs and insurance for premises, which are used for the purpose of business or profession while computing income from 'profits and gains from business or profession' are as follows:

• Where the premises are occupied by the assessee:
  1. As a tenant, the rent paid for such premises; and further if he has undertaken to bear the cost of repairs to the premises, the amount paid on account of such repairs; excluding expenditure in the nature of capital expenditure.
  2. Otherwise than as a tenant, the amount paid by him on account of current repairs to the premises; excluding expenditure in the nature of capital expenditure.
• Any sums, paid on account of land revenue, local rates or municipal taxes;
• The amount of any premium, paid in respect of insurance against risk of damage or destruction of the premises.

Deductions which are allowed in respect of repairs and insurance of machinery, plant and furniture

S 31: The following deductions shall be allowed in respect of repairs and insurance of machinery, plant and furniture:

• The amount paid on account of current repairs thereto; excluding expenditure in the nature of capital expenditure.
• The amount of any premium, paid in respect of insurance against damage or destruction thereof.