Section 31 of Income Tax Act, 1961: Repairs and insurance of machinery, plant and furniture.
Finance Act 2020 and the Income-tax Rules amend Section 31 of the Income Tax Act of 1961. Furniture, equipment, and machinery repairs and insurance.
The provisions of Section 31 of the Income-tax Act of 1961 are now known to us. The revised section 31 clause is applicable to the fiscal year 2020–21 and the assessment year 2021–22. The Income Tax Act, 1961, Bare Act, Income Tax Rules, 1962, regulations, notifications, circulars, orders, and press releases issued by the CBDT, the Income Tax Department, and the Ministry of Law and Justice, Government of India, are all covered in detail in this article.
In this Section 31 of Income Tax Act, 1961 The following deductions are allowed for machinery, plant, and furniture used for business or professional purposes:
1. The cost of any recent repairs made to them; and
2. The cost of any premiums paid for insurance against the risk of damage or destruction of such items.
For the purpose of clearing up any confusion, it is hereby declared that the amount paid for current repairs shall not include any expenditure of the sort that would be considered a capital expenditure.