Wednesday, 5 July 2017

Deductions from Income from Other Sources [Sec. 57]


The following expenditures are allowed as deductions from income chargeable to tax under the head ‘Income from Other Sources’:
S.N.SectionNature of IncomeDeductions allowed
157(i)Dividend or Interest on securitiesAny reasonable sum paid by way of commission or remuneration to banker or any other person for purpose of realizing dividend  or interest on securities
257(ia)Employee’s contribution towards Provident Fund, Superannuation Fund, ESI Fund or any other fund setup for the welfare of such employeesIf employees’ contribution is credited to their account in relevant fund on or before the due date
357(ii)Rental income letting of plant, machinery, furniture or buildingRent, rates, taxes, repairs, insurance and depreciation etc.
457(iia)Family Pension1/3rd of family pension subject to maximum of Rs. 15,000.
557(iii)Any other incomeAny other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income
657 (iv)Interest on compensation or enhanced compensation50% of such interest (subject to certain conditions)
758(4)ProvisoIncome from activity of owning and maintaining race horses.All expenditure relating to such activity.

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