Section 28: rent, rates, taxes, repairs and insurance

What is deductible

In respect of premises, machinery, plant or furniture used for the business or profession, the following are deductible (section 28(1)):

• Insurance premium against risk of damage or destruction of the premises/machinery/plant/furniture
• Land revenue, local rates or municipal taxes paid
• Rent paid, where the premises are occupied by the assessee as a tenant
• Cost of current repairs to the premises (not capital in nature), where the assessee occupies them otherwise than as a tenant
• Cost of repairs to the premises (not capital in nature), where the assessee occupies them as a tenant and has undertaken to bear repair costs
• Cost of current repairs to machinery, plant or furniture (not capital in nature)

Proportionate restriction for partial business use

Where the premises, building, machinery, plant or furniture is only partly used, or not wholly and exclusively used, for the business or profession, the deduction is restricted to the fair proportionate part as determined by the Assessing Officer, having regard to the extent of business use (section 28(2)).

Frequently asked questions