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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 1[dividends], 3. [other than that referred in sub-clause (f) of clause (22) of section 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 or interest on behalf of the assessee ; (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 sub-sections (1) and (2) of section 32 and subject to the provisions of section 38 ; (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 fifteen thousand rupees, whichever is less. 4. [‘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 5.[“twenty-five thousand rupees”,] 6[“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.”] 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. The following clause (iv) shall be inserted after clause (iii) of section 57 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 : (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. Explanation.[Omitted by the Finance Act, 1988, w.e.f. 1-4-1989.] 2[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.] Amendemt 1. Substituted by the Finance Act, 2020. Amendment Effective From 01st April, 2021 in clause (i), for the words, figures and letter dividends, other than dividends referred to in section 115-O the following shall be substituted namely; dividends. 2. Inserted by the Finance Act, 2020. Amendment Effective From 01st April, 2021 3.Inserted by the Finance Bill 2024 dated 07.08.2024 w.e.f 01.10.2024 4 Inserted by the Finance Bill 2024 dated 07.08.2024 w.e.f 01.04.2025 5. Substituted by the Finance Bill 2024 dated 07.08.2024 w.e.f 01.04.2025 in clause (iia),the words fifteen thousand rupees”, the following shall be substituted namely “twenty-five thousand rupees” 6.Inserted by the Finance Bill 2024 dated 07.08.2024 w.e.f 01.10.2024
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