Income-tax Act, 2025 · Part D — Profits and gains of business or profession

Section 28Rent, rates, taxes, repairs and insurance

Income-tax Act, 2025 (30 of 2025)

(1)

The following amounts shall be allowed as deduction in respect of premises, machinery, plant or furniture used for the purposes of the business or profession:—

(a)any premium paid in respect of insurance against risk of damage or destruction thereof;

(b)land revenue, local rates or municipal taxes paid;

(c)rent paid, when the premises are occupied by the assessee as a tenant;

(d)amount paid on account of current repairs to the premises, not being in the nature of capital expenditure, when the premises are occupied by the assessee otherwise than as a tenant;

(e)amount paid on account of cost of repairs, not being in the nature of capital expenditure, when the premises are occupied by the assessee as a tenant and where he has undertaken to bear the cost of repairs to the premises; and

(f)the amount paid on account of current repairs to machinery, plant or furniture, not being in the nature of capital expenditure.

(2)

In case where the premises, building, machinery, plant or furniture is partly used or not wholly and exclusively used for the purposes of the business or profession, the deduction allowable under sub-section (1) shall be restricted to the fair proportionate part thereof as determined by the Assessing Officer, having regard to the usage for the purposes of the business or profession.

Referenced by

§ 207(5)

§ 208 Tax on income from units purchased in foreign currency or capital gains arising from their transfer.

§ 209 Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.

§ 210 Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

§ 225 Income from business of operating qualifying ships

§ 230(1)

§ 27 Manner of computing profits and gains of business or profession

§ 34(1)

§ 55 Insurance business

§ 58(1)

§ 60(1)

§ 61(1)

§ 93(1)

§ Schedule XIV INSURANCE BUSINESS

Rule 100 Safe harbour for income attribution in case of income from business and profession

Rule 178 Application under section 28 8(1)[Table: Sl. No. 11] regarding credit of tax deduction at source