Rent, rates, repairs and insurance for buildings - 30


Rent, rates, repairs and insurance for buildings - 30

  • In respect of buildings used for the purposes of business or profession

tenant
Ø  Rent paid,
Ø  Cost of repairs, if assessee has undertaken to bear such expenses
Sub-let
Ø  Difference between rent paid and rent recovered is allowable
Ø  Rent paid is allowable
Occupied as owner
Ø  No notional rent is allowed.
Ø  Used for firm - rent paid to partner is allowable (40(b))
Repairs of premises
Allowable to:
Ø  Owner
Ø  Tenant under taken to bear the cost
Ø  Otherwise than owner or tenant, i.e.., lessee, licensee or mortgage with possession
Ø  Repairs of capital nature are not allowed
Other expenses
Ø  Land revenue, local rates, municipal taxes and insurance
Ø  Cesses, rates and taxes levied by foreign govt.
Partly for business
Ø  proportionate allowance to that part of building


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