Business income deductions against Rent, repairs etc.: Clause 28 of the Income Tax Bill, 2025 Compared with Sections 30 and 31 of the Income-tax Act, 1961

Deductions for rent and repairs clarified: proportionate claims allowed for partial business use under new clause.

Clause 28 consolidates deductions for premises, machinery, plant, and furniture used wholly and exclusively for business or profession, allowing deductions for insurance premiums, local taxes, rent, and current (non-capital) repairs. It preserves tenant-specific rent and repair claims and imposes an explicit apportionment rule: where assets are not wholly used for business, deductions are limited to a fair proportionate part as determined by the Assessing Officer, thereby centralising assessment discretion and requiring supporting documentation for partial-use allocations.