Repairs and insurance for Machinery, plant and furniture - 31


Repairs and insurance for Machinery, plant and furniture - 31



Usage of asset
Ø  Used for assessee's own business
Ø  Usage includes both active and passive use
Ø  Not allowable on discarded but owned assets
Ø  Even owned for part of year, full amount is allowable
Ø  Repairs exclude replacement or reconstruction
Ø  Only current year expenses are allowed under this section
Ø  Repairs of capital nature are not allowed
Insurance premium
Ø  Insurance must be against risk of damage
Ø  Assets must be used for his business or profession
Ø  Premium shall be actually paid or payable
Ø  Premium paid to trade association which takes indemnity is allowable, even if part of contribution is returnable
Ø  It is irrelevant whether Insurance claim belong to someone else


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