Building, etc., partly used for business, etc., or not exclusively so used: Clauses 28 and 33 of the Income Tax Bill, 2025 vs. Section 38 of the Income-tax Act, 1961

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..... , 2025, introduces several significant changes to the taxation framework concerning profits and gains from business or profession. Clauses 28 and 33 specifically address deductions related to expenses on premises and depreciation of assets, respectively. These clauses aim to modernize and streamline the provisions to better align with contemporary business practices. This article provides a compre .....

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..... businesses can fairly claim deductions for asset wear and tear. Section 38 of the Income-tax Act, 1961, deals with the apportionment of deductions for assets not exclusively used for business. It aims to ensure that only the business-related portion of expenses is deductible, preventing misuse of deductions for personal or non-business purposes. Detailed Analysis Clause 28: Deductions for Rent, .....

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..... also addresses situations where assets are used for less than 180 days, and the treatment of assets in cases of succession, amalgamation, or demerger. Section 38 of Income Tax Act, 1961: Apportionment of Deductions - Sub-section (1): Addresses deductions for premises partly used as a dwelling, allowing the Assessing Officer to determine the proportionate deduction based on business use. - Sub .....

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..... arer guidance to taxpayers and assessing officers. - Clause 33 vs. Section 38: While Section 38 focuses on apportionment, Clause 33 provides a comprehensive structure for depreciation, including specific rates and conditions for additional deductions. This reflects a more modern approach to asset depreciation, encouraging investment in new assets. Conclusion The Income Tax Bill, 2025, through .....

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