Section 30 → Section 31
Rent, rates, taxes, repairs and insurance for buildings
Quick Answer
Section 30 of the Income Tax Act, 1961 (Rent, rates, taxes, repairs and insurance for buildings) corresponds to Section 31 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 30
Section 30 of the 1961 Act sets out the rules on rent, rates, taxes, repairs and insurance for buildings. Allows deduction for rent, current repairs, local taxes, and insurance premiums paid for premises used for business.
The new code maps this to Section 31: the provision is retained and renumbered as Section 31 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Explicitly clarifies that capital expenditure on buildings disguised as 'repairs' is strictly disallowed.
On the ground, changes to Section 30 carry a Medium impact. Standard business expense section.
Sec 30
Provision Summary
Allows deduction for rent, current repairs, local taxes, and insurance premiums paid for premises used for business.
Sec 31
Provision Summary
Retained. Explicitly clarifies that capital expenditure on buildings disguised as 'repairs' is strictly disallowed.
Key Changes & Highlights
- Co-working space rentals and virtual office subscriptions expressly validated as allowable deductions.
Frequently Asked Questions
What does Section 30 of the Income Tax Act 1961 deal with?
Section 30 of the Income Tax Act, 1961 covers rent, rates, taxes, repairs and insurance for buildings. Allows deduction for rent, current repairs, local taxes, and insurance premiums paid for premises used for business.
Where does Section 30 of the ITA 1961 go under the Income-tax Act, 2025?
Section 30 of the Income Tax Act, 1961 maps to Section 31 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Explicitly clarifies that capital expenditure on buildings disguised as 'repairs' is strictly disallowed.
Why does the change to Section 30 matter for taxpayers?
The transition impact for Section 30 is rated Medium. Standard business expense section.
What are the key changes to Section 30 under the Income-tax Act, 2025?
Co-working space rentals and virtual office subscriptions expressly validated as allowable deductions. These points are specific to Section 30 (Rent, rates, taxes, repairs and insurance for buildings).
Disclaimer: This mapping of Section 30 (Rent, rates, taxes, repairs and insurance for buildings) to Section 31 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 30 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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