Comparison of Section 28 'Rent, rates, taxes, repairs and insurance' between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

Deductions for business asset expenses broadened where used for business, subject to apportionment and capital expenditure classification.

Allowable deductions for business or professional profits include insurance premiums, land revenue/local rates/municipal taxes, rent for premises occupied as a tenant, current repairs to premises when not a tenant, and cost of repairs where a tenant has undertaken to bear repair costs. Expenditure in the nature of capital expenditure is excluded. Where assets are partly used for business, deduction is restricted to a fair proportionate part as determined by the Assessing Officer. The Passed Act broadens use-based entitlement and expressly permits repairs to machinery, plant and furniture.