Can a Tenant claim deduction under Income Tax return for the expenses incurred for renovation?

[samkapoor77]

If an individual is a tenant in a premises and he/she has incurred certain amount in renovation of the premises. Is he/she liable to claim deduction under Income Tax return for the expenses incurred as revenue expenditure?

[samkapoor77]

Yes, if an individual is a tenant in a premises and he/she has incurred certain amount in renovation of the premises. Then he /she is entitled to the benefits of Section37 of the income tax Act 1961. The tenant in legal words does not acquire any capital assets in doing the financial activities because firstly the building or the property does not belong to the tenant and secondly as such expenditure on renovation cannot be termed as revenue nature. The expenditure was made for the purpose of facilitating assesses financial activities or in other case said amount would be termed as revenue expenditure under section 37 of Income tax act.

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