Section 30 Expenses of Building

Last updated at Dec. 13, 2024 by

This Section Covers following Expenses of Building

1 Rent

2.Current Repairs of Building

3. Taxes of Building like Municipal Taxes/House Tax

4.Insurance Premium

 

These may be paid by landlord or tenant.Deduction  Allowed to person who pays it

 

Deduction is Allowed subject to following Conditions

S.No Expense Name

Deduction

Allowed to

Conditions if any
1 Rent Tenant -
2 Repair Tenant/Landlord

They should be Current Repairs

If they are in nature of Capital Expenditure,then not allowed as deduction.

Instead Depreciation available u/s 32

For Ex- New floor Constructed

3 Insurance Premium Tenant/Landlord -
4 Municipal Taxes Tenant/Landlord

They should be actually paid before return filing date 31 July/30 September.

If not paid till then,then not allowed as deduction

  DOWNLOAD AND TRY

Important Sections of PGBP Assignments.xlsx
 
 
 
 
 

Q1

Particulars Amt
Income 600000
Expenses 400000
Profit 200000

Suppose the Expenses Include Municipal taxes of 10000 which were not paid till Return Filing Date

Calculate PGBP Income

View Answer

Q2

Particulars Amt
Income 550000
Expenses 150000
Profit

400000

Suppose Expenses Include Repair and Maintenance Expense of 80000 which were actually Capital expenses on construction of a new shop.

Depreciation on Building is 10%

Calculate PGBP by Direct and Indirect Method

 

 Direct Method

View Answer

Indirect Method

View Answer
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CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.