What is deduction u/s 57?
(a) Collection charges [Section 57(i)]: Any reasonable sum paid by way of commission or remuneration to a banker, or any other person for the purpose of realising the interest. (b) Interest on loan [Section 57(iii)]: Interest on money borrowed for investment in securities can be claimed as a deduction.
What is profit chargeable to tax u/s 59?
Profits chargeable to tax. 59. (1) The provisions of sub-section (1) of section 41 shall apply, so for as may be, in computing the income of an assessee under section 56, as they apply in computing the income of an assessee under the head “Profits and gains of business or profession”.
What expenses are not allowed to be deducted under the head income from other sources?
The deductions that cannot be claimed during computation of ‘Income from other sources’ are: Personal expenses. Amount mentioned as per Section 40A is not deductible. Taxable amount paid under the category ‘salaries’ and payable outside India taxes have not been paid or deducted at source.
What is section 58 of Income Tax Act?
Expenses not deductible under Section 58
| Section | Nature of Income |
|---|---|
| 58(1)(a)(ii) | Interest subject to tax, which is payable outside India (there has been no previous tax deduction on this interest) |
| 58(1)(a)(iii) | ‘Salary’ payable outside India on which no tax is deducted at source or paid |
| 58(1A) | Wealth-tax |
What is amount not deductible u/s 58?
PERSONAL EXPENSES [Section 58(1)(a)(i)] – Any personal expenses of the assessee is not deductible. INTEREST [Section 58(1)(a)(ii)] – Any interest (which is chargeable under the Act in the hands of recipient) which is payable outside India on which tax has not been paid or deducted at source, is not deductible.
What is section 58 of Income Tax?
What is deduction us 58 of Income Tax Act?
PERSONAL EXPENSES [Section 58(1)(a)(i)] – Any personal expenses of the assessee is not deductible. EXPENDITURE IN RESPECT OF WINNINGS FROM LOTTERY [Section 58(4)] – No deduction shall be allowed under any provision of the Act in computing the income by way of any winnings from lotteries, crossword puzzles, races.
How much cash payment is allowed in a year?
10 min read. Income Tax law provides for permissible cash expenses as deductible expenses for cash payments exceeding Rs 20,000 in a single day i.e. payment is made otherwise than by electronic clearing system or an account payee check or an account payee bank draft won’t be permitted as a deductible expense.
How much cash can be received in a day?
An individual cannot accept more than Rs 2 lakh cash from close relatives in a single day. Companies, firms are also not allowed to accept or pay cash beyond a limit. If a business owner transacts for more than Rs 10,000 in cash, then that amount can not be claimed as an expenditure.
Are there any income tax deductions under Section 58?
Section 58 of Income Tax Act 1961-2017 provides for No Deductions from Income from other sources. (1) Notwithstanding anything to the contrary contained in section 57, the following amounts shall not be deductible in computing the income chargeable under the head “Income from other sources”, namely:—
Is the amount not deductible in the IT Act 1961?
Section 58 of IT Act 1961-2020 provides for amounts not deductible. Recently, we have discussed in detail section 57 (deductions) of IT Act 1961. Today, we learn the provisions of section 58 of Income-tax Act 1961. The amended provision of section 58 is effective for financial year 2020-21 relevant to the assessment year 2021-22.
How does section 40 of the Income Tax Act apply?
The provisions of sub-clauses (ia) and (iia) of clause (a) of section 40 shall, so far as may be, apply in computing the income chargeable under the head “Income from other sources” as they apply in computing the income chargeable under the head “Profits and gains of business or profession”.