What is Income from profits and gains of business or profession, how computed? What is Rent, rates, taxes, repairs and insurance for buildings? Section 29 and 30 of Income Tax Act 1961

Income from profits and gains of business or profession, how computed and Rent, rates, taxes, repairs and insurance for buildings are defined under section 29 and 30 of Income Tax Act 1961. Provisions under these sections are:

Section 29 of Income Tax Act "Income from profits and gains of business or profession, how computed"

29. The income referred to in section 28 shall be computed in accordance with the provisions contained in sections 30 to 43D.

Section 30 of Income Tax Act "Rent, rates, taxes, repairs and insurance for buildings"

30. In respect of rent, rates, taxes, repairs and insurance for premises, used for the purposes of the business or profession, the following deductions shall be allowed-

(a) where the premises are occupied by the assessee-

(i) as a tenant, the rent paid for such premises; and further if he has undertaken to bear the cost of repairs to the premises, the amount paid on account of such repairs ;

(ii) otherwise than as a tenant, the amount paid by him on account of current repairs to the premises ;

(b) any sums paid on account of land revenue, local rates or municipal taxes ;

Explanation.-For the removal of doubts, it is hereby declared that the amount paid on account of the cost of repairs referred to in sub-clause (i), and the amount paid on account of current repairs referred to in sub-clause (ii), of clause (a), shall not include any expenditure in the nature of capital expenditure.