Section 93Chapter 4

Deductions

(1)

The income chargeable under the head “Income from other sources” shall be computed after making the following deductions:—

(a) for dividends [excluding those referred to in section 2section 2(40)(f) or interest on securities, any reasonable sum paid as commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee;

(b)

for income of the nature referred to in section 92section 92(2)(c), so far as may be, an amount as per section 29section 29(1)(e);

(c)

for income of the nature referred to in section 92section 92(2)(f) and (g), so far as may be, an amount as per section 28section 28(1)(a), (b), (d), section 33section 33, and subject to the provisions of section 28section 28(2);

(d)

for income in the nature of family pension (a regular monthly amount payable by the employer to a family member of an employee upon the death of such employee),––

(i) an amount equal to one-third of such income or twenty-five thousand rupees, whichever is less, where income-tax is computed under section 202section 202(1); and

(ii) an amount equal to one-third of such income or fifteen thousand rupees, whichever is less, in any other case;

(e)

any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for making or earning such income;

(f)

for income of the nature referred to in section 92section 92(2)(i), an amount equal to 50% of such income and no other deduction shall be allowed under this section.

(2)

In respect of––

(a) dividend income of the nature referred to in section 2section 2(40)(f), no deduction shall be allowed;

(b)

any other dividend income [other than in clause (a)], or income from units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21) or income from units of a specified company as referred to in section 2section 2(h) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, only deduction allowed shall be interest expense which, for any tax year, shall be limited to 20% of such income (included in the total income for that year, without deduction under this section).