Rent, Rates, & Taxes of Building - Section 30 - Income Tax - Ready Reckoner - Income Tax

Rent, Rates, Taxes of Building - Section 30 Deduction allowed to Owner or tenant in respect of premises: Rent Revenue expenses on repairs Land revenues, local rates or municipal taxes subject to section 43B Insurance premium Note: Capital expenditure on repairs by tenant is treated as deemed as building and depreciation is allowed to the tenant on deemed building. Capital expenditure on repair by the owner shall be added to the cost of building. Any sum paid (whether as owner or tenant) on account of land revenue, local rates or municipal taxes. However, these are allowable subject to provisions of section 43B i.e. if these expenses are claimed on due basis, the payment of the same must be made on or before the due date of furnishing the return of income under section 139 (1). Other Relevant Information - Expenditure on construction and renovation in a leasehold premises Substantial expenditure that leads to enduring benefit in the future to assessee shall not be considered as revenue expenses Therefore, these are capital expenses. CIT Madurai. vs M/S. Viswams, Shri Rm K Viswanatha Pillai Sons, M/S. Aremkay, M/S. Kajah Enterprises (P) Limited., Shri K. Sivakumar and Shri K.V. Nellaiyappan 2019 (4) TMI 1127 - Madras High Court