The Income-Tax Act, 1961

57. Deductions.-

The income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely:-

(i) ¹[in the case of dividends, other than dividends referred to in section 115-O], 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 ²[or interest] on behalf of the assessee;

³[(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 ⁴[sub-sections (1) 5*** and (2) of section 32] and subject to the provisions of ⁶[section 38];

⁷[(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 ⁸[fifteen thousand rupees], whichever is less.

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 purposeof making or earning such income;

⁹[(iv) in the case of income of the nature referred to in clause (viii) of sub-section (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.]

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1. Subs. by Act 32 of 2003, s. 32, for "in the case of dividends" (w.e.f. 1-4-2004).

2. Ins. by Act 26 of 1988, s.19 (w.e.f. 1-4-1989).

3. Ins. by Act 11 of 1987, s. 27 (w.e.f. 1-4-1988).

4. Subs. by Act 42 of 1970, s. 14, for "sub-sections (1) and (2) of section 32" (w.e.f. 1-4-1970).

5. The brackets, figure and letter "(1A)" omitted by Act 46 of 1986, s. 32 (w.e.f. 1-4-1988).

6. Subs. by s. 32, ibid., for "sections 34 and 38" (w.e.f. 1-4-1988).

7. Ins. by Act 13 of 1989, s. 13 (w.e.f. 1-4-1990).

8. Subs. by Act 26 of 1997, s. 20, for "twelve thousand rupees" (w.e.f. 1-4-1998).

9. Ins. by Act 33 of 2009, s. 27 (w.e.f. 1-4-2010).

10. The proviso omitted by Act 32 of 1994, s. 19 (w.e.f. 1-1995).

11. The Explanation omitted by Act 26 of 1988, s. 19 (w.e.f. 1-4-1989).

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