Condition: The building should be used for the purpose of business or profession during the relevant previous year.
Deduction: The following expenses are allowed as deduction-
- Rent paid as tenant.
- Current repair expenses towards the premises.
- Land Revenue or local rates or municipal taxes.
- Insurance premium paid in respect of damage or destruction of the building.
Inadmissible Expenditure: Current repairs of Capital Nature shall not be allowed as deduction.
Expenditure on Plant and Machinery or Furniture, Allowable as Deduction (Section 31)
Condition: The plant and machinery or furniture should be used for the purpose of business or profession during the relevant previous year.
Deduction: The expenses allowed as deduction are –
- Amount paid on account of current repairs.
- Insurance premium paid against damage or destruction thereof.
Inadmissible Expenditure: Current repairs of Capital Nature shall not be allowed as deduction.
Used for the part of the year: Even if the assets are used for only part of the previous year, the assessee can claim full deduction.
Meaning of plant (Section 43(3))
Plant includes: Ships, Vehicles, books, scientific apparatus and surgical equipment used for the purpose of business or provision.
Plant excludes: Tea bushes or livestock or buildings or furniture and fittings.