India - Income Tax Act 2010 - Saarc

1.165 CH. IV - COMPUTATION OF BUSINESS INCOME S. 32(b) any sums paid on account of land revenue, local rates or municipaltaxes ;(c) the amount of any premium paid in respect of insurance against riskof damage or destruction of the premises.72[Explanation.—For the removal of doubts, it is hereby declared that the amountpaid on account of the cost of repairs referred to in sub-clause (i), and the amountpaid on account of current repairs referred to in sub-clause (ii), of clause (a), shallnot include any expenditure in the nature of capital expenditure.]Repairs and insurance of machinery, plant and furniture.7331. 74 In respect of repairs and insurance of machinery, plant or furniture usedfor the purposes of the business or profession, the following deductionsshall be allowed—(i) the amount paid on account of current repairs 75 thereto ;(ii) the amount of any premium paid in respect of insurance against riskof damage or destruction thereof.76[Explanation.—For the removal of doubts, it is hereby declared that the amountpaid on account of current repairs shall not include any expenditure in the natureof capital expenditure.]Depreciation.7732. (1) 78 [In respect of depreciation of—(i) buildings 79 , machinery 79 , plant or furniture, being tangible assets;(ii) know-how, patents, copyrights, trade marks, licences, franchises orany other business or commercial rights of similar nature, beingintangible assets acquired on or after the 1st day of April, 1998,owned 79 , wholly or partly, by the assessee 79 and used for the purposes of thebusiness 79 or profession, the following deductions shall be allowed—]72. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.73. See also Circular No. 26-D(XLVI-22), dated 10-10-1966. For details, see Taxmann’s MasterGuide to Income-tax Act.74. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.75. For the meaning of the expression “current repairs”, see Taxmann’s Direct Taxes Manual,Vol. 3.76. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.77. See also Circular No. 9, dated 23-3-1943, Circular No. 29-D(XIX-14), dated 31-8-1965,Letter [F.No. 10/14/66-IT(A-I)], dated 12-12-1966, Circular No. 14 of 1955, dated 11-4-1955,Circular No. 609, dated 29-7-1991, Circular No. 622, dated 6-1-1992, Circular No. 652, dated14-6-1993 and Circular No. 2/2001, dated 9-2-2001. For details, see Taxmann’s MasterGuide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.78. Substituted for the opening portion beginning with the words “In respect of depreciationof buildings, machinery, plant or furniture owned, wholly or partly,” and ending with thewords and figures “section 34, be allowed—” by the Finance (No. 2) Act, 1998, w.e.f.1-4-1999. Prior to its substitution, the quoted portion was amended by the Finance (No. 2)Act, 1996, w.e.f. 1-4-1997.79. For the meaning of the terms/expressions “buildings”, “machinery”, “owned by theassessee” and “used for the purposes of the business”, see Taxmann’s Direct Taxes Manual,Vol. 3.