Deduction Under Section 57

Interest on enhanced compensation taxable u s 56 2 viii 5 00 000.

Deduction under section 57. Deductions 1 the income chargeable under the head income from other sources shall be computed after making the following deductions namely. 6 2 of his order as reproduced above that no such detail was furnished by the assessee. With respect to each property as defined in section 614 the excess of the deduction for depletion allowable under section 611 for the taxable year over the adjusted basis of the property at the end of the taxable year determined without regard to the depletion deduction for the taxable year.

Section 57 in the income tax act 1995. As discussed in the case of. The following expenses can be claimed as.

6 2 of his order as reproduced above that no such detail was furnished by the assessee. Clause iii to section 57 makes admissible the deduction of 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 income chargeable under the head income from other sources. Regarding the allowability of deduction under clause iii of section 57 it has to be established by the assessee that expenditure has been exclusively laid out or expended wholly and exclusively for the purpose of making or earning such income taxable under the head income from other sources and a categorical finding has been given by cit a in para no.

Deductions for expenses from interest on securities section 57 i and iii. Items of tax preference. Deductions for expenses from dividend income section 57 i and 57 iii.

Standard deduction in the case of family pension section 57 iia. Any other expenditure not being a expenditure of a capital nature laid out or expended wholly and exclusively for the purpose of making or earning such income can be claimed as a deduction. Deductions from income from other sources section 57 1.

Note the supreme court held in cit v. Regarding the allowability of deduction under clause iii of section 57 it has to be established by the assessee that expenditure has been exclusively laid out or expended wholly and exclusively for the purpose of making or earning such income taxable under the head income from other sources and a categorical finding has been given by cit a in para no. The income chargeable under the head income from other sources shall be computed after making the following deductions namely i in the case of dividends other than dividends referred to in section 115 o 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 or interest on behalf of the assessee.