Deductions - Section 57 - Income Tax - Ready Reckoner - Income Tax

Section 57 DEDUCTION The income chargeable to tax under this head is computed after making the following deductions: In the case of dividend [ other than dividend specified u/s 2(22)(f) Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] , other than income and interest on securities: any reasonable sum paid by way of remuneration or commission for the purpose of realising such dividend or interest Sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees' State Insurance Act, 1948 - In the case of income of the nature referred to in section 2(24)x) 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 section 36(1)(va) . In the case of income in the nature of family pension: 15,000 or 33⅓ percent of such income, whichever is lower. Where income-tax is computed u/s 115BAC(1A)(ii), income in the nature of family pension: 25,000 or 33⅓ percent of such income, whichever is lower. [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.04.2025 ] Any other expenditure (not being a capital expenditure) expended wholly and exclusively for the purpose of earning such income. In the case of interest on compensation or enhanced compensation received u/s 56(2)(vii) 50% of such interest and no deduction shall be allowed under any other clause of this section. No deduction shall be allowed from the dividend income, or income in respect of units of a Mutual Fund specified u/s 10(23D) or income in respect of units from a specified company defined in the Explanation to section 10(35), other than deduction on account of interest expense, and in any previous year such deduction shall not exceed 20% of the dividend income, or income in respect of such units, included in the total income for that year, without deduction under this section No deduction shall be allowed in case of dividend income of the nature referred to in section 2(22)(f). [ Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ]