Section 57 of Income Tax Act 1961 : Deductions from Income from other Sources

By | December 3, 2017
(Last Updated On: December 3, 2017)

Section 57 of Income Tax Act 1961

( Amended by Finance Act 2017 ]

[ Section 57 of Income Tax Act 1961 explains Deductions from Income from other Sources ]

Deductions.

84 57. The income chargeable under the head “Income from other sources” shall be computed after making the following deductions, namely :—

(i)in the case of dividends, 85[other than dividends referred to in section 115-O,] 86[or interest on securities], any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend 87[or interest] on behalf of the assessee ;
88[(ia)in the case of income of the nature referred to in sub-clause (x) of clause (24) of section 2 which is chargeable to income-tax under the head “Income from other sources”, deductions, so far as may be, in accordance with the provisions of clause (va) of sub-section (1) of section 36 ;]
(ii)in the case of income of the nature referred to in clauses (ii) and (iii) of sub-section (2) of section 56, deductions, so far as may be, in accordance with the provisions of sub-clause (ii) of clause (a) and clause (c) of section 30, section 31 and 89[sub-sections (1) 90[***] and (2)] of section 32 and subject to the provisions of 91[section 38] ;
92[(iia)in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or 93[fifteen] thousand rupees, whichever is less.
Explanation.—For the purposes of this clause, “family pension” means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death ;]
(iii)any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income;
95[(iv)in the case of income of the nature referred to in clause (viii) of sub-section (2) of section 56, a deduction of a sum equal to fifty per cent of such income and no deduction shall be allowed under any other clause of this section.]

96[***]

Explanation.—[Omitted by the Finance Act, 1988, w.e.f. 1-4-1989.]


Notes :-
96. Omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to its omission, proviso was inserted by the Finance Act, 1976, w.e.f. 1-6-1976 and later on substituted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1989.
95. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.
93. Substituted for “twelve” by the Finance Act, 1997, w.e.f. 1-4-1998.
92. Inserted by the Finance Act, 1989, w.e.f. 1-4-1990.
91. Substituted for “sections 34 and 38” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.
90. “, (1A)” omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.
89. Substituted for “sub-sections (1) and (2)” by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
88. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988.
87. Inserted by the Finance Act, 1988, w.e.f. 1-4-1989.
86. Inserted by the Finance Act, 1988, w.e.f. 1-4-1989.
85. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.
 84. See also Circular No. 156, dated 23-12-1974 (Fees paid under Ceylon Exchange Control Law), Circular No. 594, dated 27-2-1991 (Ad hoc deduction to agents other than insurance agents), Circular No. 648, dated 30-3-1993 (Ad hoc deduction to insurance agents) and Circular No. 677, dated 28-1-1994 (Ad hoc deduction to agents of mutual funds).

Related Post

Income Tax Books

Income Tax Press Release

Income Tax Notifications

Income Tax Circulars

Income Tax Instructions

Income Tax Office Memorandum

Income Tax Judgments

Income Tax FAQ

Income Tax Video Tutorial

Leave a Reply

Your email address will not be published. Required fields are marked *