Section 38(1)
Premises partly used for Business Partly for Dwelling House by Assessee
In this case AO will determine the proportionate amount of
- Annual Value
- Repairs
- Municipal Taxes
Used for the purpose of Business and Profession
Deduction is available in Section 30 of only that proportionate amount.
Note:-
AO will determine proportionate amount
How does AO Determine Proportionate amount?
| S.No | Expense Name | Deduction Allowed to | How does AO determine Proportionate Amount |
| 1 | Rent | Tenant | AO will determine proportionate annual value (Annual value of property used in business/total annual value) |
| 2 | Repair | Tenant/Landlord | Amount as determined by AO |
| 3 | Insurance Premium | Tenant/Landlord | n/a |
| 4 | Municipal Taxes | Tenant/Landlord | AO will determine Proportionate value on basis of area |
Section 38(2)
Similaly if any building, machinery, plant or furniture is not exclusively used for the purposes of the business or profession,
then AO will determine the proportionate amount which is used for the purpose of Business and Profession Deduction is available in Section 31 and 32 of only that proportionate amount.
