Other Deductions Introduction Section 36 allows deductions for various revenue expenses incurred during business or professional operations, provided specific conditions are met. List of Key Deductions Insurance Premium [Section 36(1)(i)/(ia)/(ib)]: For damage or destruction of stock or stores, on the life of cattle (paid by the federal milk co-operative society), or employees’ health (paid by other… Read More »

Deduction for Interest on Borrowed Capital Introduction Interest on capital borrowed for business or profession is allowable as deduction. However, interest relating to the period before a capital asset is put to use must be capitalised and added to the actual cost of the asset. Conditions to Claim Deduction Where money is borrowed to acquire… Read More »

Tea, Coffee, or Rubber Development Account Introduction The deduction under Section 33AB is available to assessee engaged in the business of growing and manufacturing tea, coffee, or rubber in India are eligible for deductions if they deposit funds in specific accounts for development purposes. These funds must be used as per the prescribed conditions, and misuse results… Read More »

Deduction for Telecom License Fees Introduction Assessees incurring capital expenditure for acquiring a license or spectrum for telecommunication services can claim deductions in equal installments over the license or spectrum term. Deduction for Spectrum Fees [Section 35ABA] Eligibility: Assessees who incur capital expenditure to acquire spectrum rights by paying spectrum fee will be allowed deduction… Read More »

Deduction for Expenditure on Scientific Research Introduction Section 35 provides deductions for expenses on scientific research, either conducted in-house or outsourced. It encompasses revenue and capital expenditures related to business, as well as contributions to approved external entities. Key Provisions Scientific Research Definition: Activities advancing knowledge in natural/applied sciences, agriculture, or medicine. Research must relate to business… Read More »

Depreciation as per Income-tax Act Introduction The term ‘depreciation’ means decrease or reduction in the value of an asset over a period of time due to wear and tear or obsolescence. Depreciation allows a business entity to allocate the cost of tangible and intangible assets (except goodwill) over their useful life. It is calculated using… Read More »

Rent, Repairs, Insurance, etc., of Building Introduction This provision allows deductions for revenue expenses incurred on premises used for business or profession, including rent, repairs, municipal taxes, and insurance. Only current repairs qualify for deduction. Deductible Expenditures Rented Premises Rent for premises used as offices, warehouses, or residential quarters. Current repairs by the tenant under… Read More »

Maintenance of Accounts Taxpayers are required to maintain books of accounts if their income, turnover, or receipts exceed prescribed thresholds. Books must be maintained at the place of business or profession for six years from the end of the relevant assessment year. Who Must Maintain Books of Accounts? Specified Professions:Legal, medical, engineering, architecture, technical consultancy,… Read More »