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Deductions - Section 57 " Income From Other Sources"

The income chargeable to tax under this head " Income from Other Sources " is computed after making the following deductions, namely:

 

(i)      In the case of dividends, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend on behalf of the assessee (excluding a foreign company).

 

(ia)    Deduction as per Section 36(1) (va) in respect of income of the nature of referred to in Section 2(24)(x).

 

 

(ii)     In the case of income by way of letting of plant and machinery, etc. deductions, so far as may be in accordance with the provisions of Section 30, 31, 32 and 38 like rent, routes, taxes, repairs and insurance of buildings, depreciation, etc.

 

(iia)   In the case of family pension, standard deduction of 33-1/3% of the pension subject to a maximum of ` 15,000.

 

(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.


Other Provisions


Personal expenses of the assessee like personal holiday expenses, etc. are not deductible from the income under this head. Likewise, the provisions of Section 40A, 40(a) (iia) and 44D are also applicable to “income from other sources” Section 58. Similarly, the provisions of Section 41(1) are applicable for charging to tax any excessive allowance for deduction which were made in the past Section 59. No deduction is allowed in computing the income from lotteries, crossword puzzles, races, card games, betting and gambling.
CONTENT - 'Income from Other Sources' and Its Computation (Section 56)

Related Topics....'Income from Other Sources'

Scope of Income Chargeable under the head 'Income from Other Sources' (Section 56)
Taxable Incomes under the head 'Income from Other Sources' [Section 56(2)]
Taxability of Dividend Income [Section 56(2)(i)]
Winnings from Lotteries, Crossword Puzzles, Horse Races and Card Games [Section 56(2)(ib)]
Interest on Securities under the head 'Income from Other Sources' [Section 56(2)(id)]
Income from Letting Out of Machinery , Plant or Furniture [Section 56(2)(ii)]
Income from Composite Letting of Machinery, Plant or Furniture and Buildings [Section 56(2)(iii)]
Share Premium in excess of the Fair Market Value to be treated as Income [Section 56(2)(viib)]
Interest on Compensation or Enhanced Compensation [Section 56(2)(viii)]
Forfeiture of Advance Received for Transfer of a Capital Asset to be Taxed under the head "Income from Other Sources" [Section 56(2)(ix)]
Income of any person to include not only gift of money from any person(s) but also the gift of property (whether movable or immovable) or property acquired for inadequate consideration [Section 56(2)(x), w.e.f. A.Y. 2018-19]
Amount Expressly Disallowed in computing the 'Income from Other Sources' (Section 58)
Deductions Allowed in computing the 'Income from Other Sources'(Section 57)
 

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