With reference to Income Tax Act, 1961, compare the benefits available, where the asset is acquired on lease and assets purchase from own fund.

Points Assets acquired on Lease Assets acquired from own fund (Purchase) Depreciation Not Allowed Allowed u/s 32 of the Income Tax Act, 1961. Revenue expenditure to the extent allowed Lease Rent allowed u/s 37(1) of the Income Tax Act, 1961. Repairs allowed u/s 31 of the Income Tax Act, 1961. Insurance premium and current repairs allowed u/s 31 of the Income Tax Act, 1961. Interest on borrowed funds allowed u/s 36 of the Income Tax Act, 1961. Status of the Assets Leased assets cannot be mortgaged. Owned tangible assets can be mortgaged.