DEDUCTIONS U/S 57

    

PERMISSIBLE DEDUCTIONS FROM INCOME FROM OTHER SOURCES [SECTION 57]

I. Commission or Remuneration for realizing Dividend or Interest on Securities:

Any reasonable sum paid to a Banker or by any other person for the purpose of realizing dividend or Interest on securities on behalf of assessee is deductible

II. Deduction in respect of Employee’s contribution towards Staff welfare scheme:

Such sum is allowable as deduction only of the sum received by the taxpayer as contribution from his employees towards any welfare fund of such employees is allowable only if such sum is credited by the taxpayer to the employee’s account in the relevant fund before the due date.

III. Repairs, Depreciation in the case of letting out of Plant, machinery, Furniture, Building:

Following expenses are allowable under this provision:

  • Current repairs in respect of Building;

  • Insurance premium in respect of Insurance against Risk of damage or destruction of the premises;

  • Repairs and Insurance of machinery, plant and furniture;

  • Depreciation.

IV. Standard Deduction in case of Family pension

The deduction allowable is Rs. 15,000/- or 33.33% of such Pension received whichever is less

V. Any other expenses for earning Income.

Any other expenses related to earning of Income from other sources should satisfy the following basic conditions to qualify as a deductible expenditure:

  • The expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning the Income;

  • The expenditure must not be in the nature of Capital expenditure;

  • It must not be in the nature of Capital expenditure;

  • It must not be in the nature of personal expenses of the assessee;

  • It must be laid out or expended in the relevant previous year and not in any prior or subsequent year.