Insurance premium deduction for stock-in-trade and business stores depends on business use and revenue character.

Premium paid for insurance against the risk of damage, loss or destruction of stock-in-trade or business stores is allowable as a deduction in computing business income, where the insured property is used for the purposes of the business or profession. The expense is treated as a revenue outgoing rather than capital expenditure, and the cover may extend to risks such as fire, theft, natural disasters and accidents.

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