TaxTMI 
TaxTMI 
Deduction Under Head "Income from Other Sources" - (New) Section 93 / (Old) Section 57
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....cally for the purpose of realising (collecting) the interest on behalf of the taxpayer. (b) For income involving employee contributions to welfare funds (as specified in Section 92(2)(c)), the following deduction rules apply: • Nature of Income: This refers to sums received by the taxpayer 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, or • any other fund for the welfare of such employees; • Allowable Deduction: A deduction is permitted in accordance with Section 29(1)(e). • Key Condition: The amount is deductible only if the....
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....n Limits: • (i) Under New Tax Regime - an amount equal to one-third of such income or Rs. 25000, whichever is less • (ii) Under the Old regime - an amount equal to one-third of such income or Rs. 15000, whichever is less (e) This is a "residual" or "catch-all" provision that allows for the deduction of expenses not specifically mentioned elsewhere, provided they meet strict criteria • Nature of Expenditure: Only revenue expenditure is deductible. Any spending of a capital nature (e.g., purchasing an asset) is strictly disallowed. • The "Wholly and Exclusively" Rule: The expense must have been incurred entirely for the purpose of earning that specific income. If an expense is ....
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....%) received is allowed as a deduction. • Eligible Scenario: This applies specifically to gratuity payments received by the family or legal heirs upon the death of the employee. • Specific Reference: The payment must qualify under the criteria set out in Section 19(2)(g) (which typically covers specific categories of employees or gallantry award winners). • Tax Impact: Since the full amount is deductible, the receipt becomes effectively exempt from tax under the head "Income from Other Sources." Section 93(2) Notwithstanding the general deductions allowed under sub-section (1), there is a strict prohibition on claiming expenses against the following types of income: • Restricted Inc....
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.... 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). • Deduction against Family Pension Income • Under Old Tax Regime - Rs. 15,000 or 33⅓ percent of such income, whichever is lower. • Under New Tax Regime - Rs. 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....