This Section Covers following Expenses of Building

1 Rent

2.Current Repairs of Building

3. Taxes of Building like Municipal Taxes/House Tax

4.Insurance Premium


These may be paid by landlord or tenant.Deduction  Allowed to person who pays it


Deduction is Allowed subject to following Conditions

S.No Expense Name


Allowed to

Conditions if any
1 Rent Tenant -
2 Repair Tenant/Landlord

They should be Current Repairs

If they are in nature of Capital Expenditure,then not allowed as deduction.

Instead Depreciation available u/s 32

For Ex- New floor Constructed

3 Insurance Premium Tenant/Landlord -
4 Municipal Taxes Tenant/Landlord

They should be actually paid before return filing date 31 July/30 September.

If not paid till then,then not allowed as deduction



Particulars Amt
Income 600000
Expenses 400000
Profit 200000

Suppose the Expenses Include Municipal taxes of 10000 which were not paid till Return Filing Date

Calculate PGBP Income

View Answer


Particulars Amt
Income 550000
Expenses 150000


Suppose Expenses Include Repair and Maintenance Expense of 80000 which were actually Capital expenses on construction of a new shop.

Depreciation on Building is 10%

Calculate PGBP by Direct and Indirect Method


 Direct Method

View Answer

Indirect Method

View Answer
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.