Deductions
57. (1) The amount of deductions referred to in section 55 shall be the aggregate of -
(a) the amount of expenditure specified in sub-section (2), if -
(i) the expenditure is laid out or expanded, wholly and exclusively, for the purposes of making or earning the gross residuary income; and
(ii) it fulfills all other conditions, if any, specified therein; and
(b) the amount of deductions specified in sub-section (3) subject to the fulfilment of the conditions, if any, specified therein;
(2) The amount of expenditure referred to in clause (a) of sub-section (1) shall be the following:-
(a) any reasonable sum paid by way of remuneration or commission;
(b) the amount determined, so far as may be, in accordance with the provisions of clause (ii), or clause (iii), of sub-section (2) of section 33;
(c) the amount determined, so far as may be, in accordance with the provisions of clause (xxxi) of sub-section (2) of section 33 in respect of income of the nature referred to in clause (d) of sub-section (2) of section 56;
(d) the amount determined, so far as may be, in accordance with the provisions of section 35 and subject to the provisions of sub-section (3) of section 32 in respect of income of the nature referred to in clause (e) of sub-section (2) of section 56; and (e) any other expenditure, not being in the nature of capital expenditure.
(3) The amount of deduction referred to in clause (b) of sub-section (1) shall be the following -
(a) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, if -
(i) the premium payable for any of the years during the term of the policy does not exceed five per cent of the actual capital sum assured; and
(ii) the sum is received only upon completion of the original period of contract of the insurance or upon the death of the insured;
(b) the amount equal to thirty-three and one-third per cent of income or fifteen thousand rupees, whichever is less, in respect of family pension; and
(c) the aggregate amount referred to in clause (h) of sub-section (2) of section 56 to the extent the aggregate does not exceed fifty thousand rupees.
(4) The amount of deduction referred to in section 55 shall, in the case of the income referred to in sub-section (6) of section 85, be a sum equal to fifty per cent of the income, regardless of anything to the contrary contained in this section.
(5) The following amounts shall, regardless of anything to the contrary contained in this section, not be allowed as a deduction, namely:-
(a) any amount relating to personal expenses of the person;
(b) any amount paid on account of wealth-tax;or
(c) any sum received under a Keyman insurance policy;
(6) The provisions of sub-section (6) of section 33 shall, so far as may be, apply in computing the income under this head as they apply in computing the income under the head "Income from business".
