# Repairs & Insurance of Machinery, Plant and Furniture [Section 31]
Section 31 allows deduction for current repairs and insurance premiums of machinery, plant and furniture used in the business.
## Repairs and Maintenance
- Assets must be used for the business of the assessee.
- Usage includes passive usage (asset kept ready for use also qualifies).
- Repairs include renewals and renovations but NOT complete replacements or reconstructions.
- Only current repairs are deductible.
- Capital-nature repairs are NOT deductible — they are added to the block of assets (depreciation instead).
- Arrears of repairs from prior years may still qualify under the general Section 37(1).
## Insurance Premium
- Deduction allowed for insurance premiums paid against damage or destruction of assets used in the business.
- Contributions to a trade association for insurance (where the loss is indemnified by such association) are deductible even if part of it is returnable to the insured in certain circumstances.
## Key Boundaries
- Current repairs ✓ → Sec 31
- Renewals / renovations ✓ → Sec 31
- Complete replacement / reconstruction ✗ → capital, goes to block of assets
- Passive use counts — the asset need not be actively running.