Section 28(1)

The following amounts shall be allowed as deduction

in respect of premises, machinery, plant or furniture

used for the purposes of the business or profession: –

(a) Insurance premium against risk of damage or destruction thereof;

(b) land revenue, local rates or municipal taxes paid;

(c) rent paid, when the premises are occupied by the assessed as a tenant;

Repair to Premises

(d) amount paid for current repairs to the premises, not being in the nature of capital expenditure,

when the premises are occupied by the assessed otherwise than as a tenant;

(e) Cost of repairs, not being in the nature of capital expenditure,

when the premises are occupied by the assessee as a tenant and

where he has undertaken to bear the cost of repairs to the premises; and

Repair to Others

(f) amount paid for current repairs to machinery, plant or furniture,

not being in the nature of capital expenditure.

Assets must be used for business or profession

In order to claim this deduction, the assets must have been used for purposes of the assessee’s own business or profession.

Section 28(2)

where the premises, building, machinery, plant or furniture

is partly used or not wholly and exclusively used for the purposes of the business or profession,

deduction allowable u/ss (1) shall be restricted to the fair proportionate part thereof

as determined by the AO, having regard to the usage for the purposes of the business or profession.