Section 31 → Section 32
Repairs and insurance of machinery, plant and furniture
Quick Answer
Section 31 of the Income Tax Act, 1961 (Repairs and insurance of machinery, plant and furniture) corresponds to Section 32 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 31
The starting point is Section 31 of the Income Tax Act, 1961 — repairs and insurance of machinery, plant and furniture. Deduction for current repairs and insurance premiums paid for machinery, plant, or furniture used for business.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 31 is retained and renumbered as Section 32 of the Income-tax Act, 2025. Retained. Software maintenance (AMC) and cloud server insurance are explicitly covered.
The transition impact on Section 31 is assessed as Low. Standard operational deduction.
Sec 31
Provision Summary
Deduction for current repairs and insurance premiums paid for machinery, plant, or furniture used for business.
Sec 32
Provision Summary
Retained. Software maintenance (AMC) and cloud server insurance are explicitly covered.
Key Changes & Highlights
- Clarification added regarding hardware upgrades vs. routine maintenance.
Frequently Asked Questions
Which subject does Section 31 of the 1961 Act cover?
Section 31 of the Income Tax Act, 1961 covers repairs and insurance of machinery, plant and furniture. Deduction for current repairs and insurance premiums paid for machinery, plant, or furniture used for business.
What is the new section number for Section 31 under the Income-tax Act, 2025?
Section 31 of the Income Tax Act, 1961 maps to Section 32 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Software maintenance (AMC) and cloud server insurance are explicitly covered.
How does the Income-tax Act, 2025 affect Section 31 in practice?
The transition impact for Section 31 is rated Low. Standard operational deduction.
What is new about Section 31 under the Income-tax Act, 2025?
Clarification added regarding hardware upgrades vs. routine maintenance. These points are specific to Section 31 (Repairs and insurance of machinery, plant and furniture).
Disclaimer: This mapping of Section 31 (Repairs and insurance of machinery, plant and furniture) to Section 32 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 31 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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