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).

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