Business income deductions against Rent, repairs etc.: Clause 28 of the Income Tax Bill, 2025 Compared with Sections 30 and 31 of the Income-tax Act, 1961

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..... roduces Clause 28, which addresses deductions related to rent, rates, taxes, repairs, and insurance for premises, machinery, plant, or furniture used in business or profession. This clause is aimed at updating and potentially expanding the scope of deductions available under the existing framework provided by Sections 30 and 31 of the Income-tax Act, 1961. Understanding these changes is crucial fo .....

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..... and exclusively for business or profession: * Insurance Premium: Deduction for premiums paid against risk of damage or destruction. * Local Taxes: Deduction for land revenue, local rates, or municipal taxes paid. * Rent: Deduction for rent paid when premises are occupied by the assessee as a tenant. * Current Repairs: Deduction for current repairs, not capital expenditure, when premises a .....

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..... surance: Similar deductions for land revenue, local rates, municipal taxes, and insurance premiums. The key difference lies in the explicit mention of non-capital expenditure in Clause 28, which aligns with the explanation provided in Section 30. Clause 28 also introduces a proportionate deduction mechanism for partial business use, which is not explicitly detailed in Section 30. Comparison with .....

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..... duction of proportionate deductions for partial business use offers flexibility but requires careful documentation and justification to satisfy the Assessing Officer's determination. Businesses must adapt their accounting practices to align with the new provisions and ensure accurate reporting of expenses. Comparative Analysis Comparing Clause 28 with similar provisions in other jurisdiction .....

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..... he proportional deduction mechanism and address any emerging ambiguities in the application of these provisions.   Full Text: Clause 28 Rent, rates, taxes, repairs and insurance. Reply By Amit Gupta The Reply: The most interesting topic of discussion on social media is whether an authorized officer can check an email ID, Facebook account, and more.
TMI Short Notes , Experts comment, .....

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