## Deduction for Building Expenses [Section 30]
Section 30 allows deductions for premises used for business or profession, with different rules depending on whether the assessee is a tenant or the owner.
### A. Building occupied as a tenant
- Rent paid is allowed.
- Cost of actual repairs borne by the tenant/lessee.
- Property taxes (subject to Sec. 43B — allowed on actual payment), insurance, and other premises-related expenses.
### B. Building owned by the assessee
- No deduction for notional rent — there is no opportunity-cost deduction for using your own building.
- A firm can claim rent paid to a partner for premises taken on rent, provided the rent is reasonable and not excessive.
- Repairs incurred by the owner are allowed.
- Property taxes (subject to Sec. 43B), insurance, and other premises-related expenses.
### C. Capital-nature expenses
- Repairs of a capital nature (owner or tenant) are NOT deductible under Sec. 30.
- Instead they are added to the block of assets as additions, and depreciation can be claimed.
### D. Premises used partly for business [Sec. 38(1)]
- Only the proportionate share relating to business use is deductible.
- If a house property is used partly for business, the actual repairs proportionate to business use can be claimed.
> Key contrast — HP vs PGBP: Under House Property, the repairs deduction is a flat 30% (standard deduction). Under PGBP (Sec. 30), only actual repair expenses are allowed.