Section 57 - Deductions - Income-tax Act, 1961

Deductions. 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 12 [ dividends ] 14 [ other than that referred in sub-clause (f) of clause (22) of section 2 ] 2 [ 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 3 [ or interest ] on behalf of the assessee ; 4 [ ( 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 5 [ sub-sections (1) 6 [ *** ] and (2) ] of section 32 and subject to the provisions of 7 [ section 38 ] ; 8 [( 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 9 [ fifteen ] thousand rupees, whichever is less. 15 [Provided that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC, the provisions of this clause shall have effect as if for the words fifteen thousand rupees , the words twenty-five thousand rupees had been substituted; ] 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. 10 [ *** ] 11 [ (iv) in the case of income of the nature referred to in clause (viii) of subsection (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. ] 13 [Provided that no deduction shall be allowed from the dividend income, or income in respect of units of a Mutual Fund specified under clause (23D) of section 10 or income in respect of units from a specified company defined in the Explanation to clause (35) of section 10, other than deduction on account of interest expense, and in any previous year such deduction shall not exceed twenty per cent. of the dividend income, or income in respect of such units, included in the total income for that year, without deduction under this section. ] 16 [Provided further that no deduction shall be allowed in case of dividend income of the nature referred to in sub-clause (f) of clause (22) of section 2. ] ---------------- Notes :- 1. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 2. Inserted by the Finance Act, 1988, w.e.f. 1-4-1989. 3. Inserted by the Finance Act, 1988, w.e.f. 1-4-1989. 4. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988. 5. Substituted for sub-sections (1) and (2) by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. 6. , (1A) omitted by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 7. Substituted for sections 34 and 38 by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 8. Inserted by the Finance Act, 1989, w.e.f. 1-4-1990. 9. Substituted for twelve by the Finance Act, 1997, w.e.f. 1-4-1998. 10. Proviso omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to its omission, proviso, as 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, read as under : Provided that nothing contained in clause (i) or clause (iii) shall apply in computing the income referred to in clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 115A in the case of an assessee, being a foreign company. 11. Inserted vide Finance (No. 2) Act, 2009, w.e.f. 1-4-2010. 12. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as dividends, 1 [ other than dividends referred to in section 115-O, ] 13. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 14. Inserted vide Section 24 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 15. Inserted vide Section 24 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 16. Inserted vide Section 24 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024