The following expenses are not deductible by virtue of section 58 in computing the income chargeable under the head 'Income from Other Sources' :
PERSONAL EXPENSES [Section 58(1)(a)(i)] - Any personal expenses of the assessee is not deductible.
INTEREST [Section 58(1)(a)(ii)] - Any interest (which is chargeable under the Act in the hands of recipient) which is payable outside India on which tax has not been paid or deducted at source, is not deductible.
SALARY [Section 58(1)(a)(iii)] - Any payment (which is chargeable under the head “Salaries” in the hands of recipient and payable outside India), is not deductible if tax has not been paid or deducted therefrom .
WEALTH TAX [Section 58(1)] - Any sum paid on account of wealth-tax is not deductible.
TDS DEFAULT [Section 58(1A)] - Disallowance provisions pertaining to TDS defaults covered by section 40(a)(ia) are applicable .
AMOUNT SPECIFIED BY SECTION 40A [Section 58(2)] - Any expenditure referred to in section 40A like excessive or unreasonable payments to certain specified persons [Section 40A(2)] and payments exceeding Rs. 20,000 otherwise than by way of account payee cheque [Section 40A(3)];
EXPENDITURE IN RESPECT OF ROYALTY AND TECHNICAL FEES RECEIVED BY A FOREIGN COMPANY [Section 58(3)] - In the case of foreign companies, expenditure in respect of royalties and technical service fees as specified by section 44D is not deductible.
EXPENDITURE IN RESPECT OF WINNINGS FROM LOTTERY [Section 58(4)] - No deduction shall be allowed under any provision of the Act in computing the income by way of any winnings from lotteries, crossword puzzles, races.
However, expenditure incurred by the assessee for the activity of owning and maintaining race horses shall be allowed as a deduction while computing the income from this activity. |
