Section 58 - Amounts not deductible - Income-tax Act, 1961

Amounts not deductible. 58. 1 [ (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 :- ( a ) in the case of any assessee,- ( i ) any personal expenses of the assessee ; 2 [ ( ia ) any expenditure of the nature referred to in sub-section (12) [3] of section 40A; ] ( ii ) any interest chargeable under this Act which is payable outside India (not being interest on a loan issued for public subscription before the 1st day of April, 1938) on which tax has not been paid or deducted under Chapter XVII-B 4 [ **** ] ; ( iii ) any payment which is chargeable under the head Salaries , if it is payable outside India, unless tax has been paid thereon or deducted therefrom under Chapter XVII-B ; ( iv ) 5 [ **** ] ( b ) 6 [* *** ] 7 [ (1A) The provisions of 11 [ 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 . ] 8 [ (2) The provisions of section 40A 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 . ] 9 [ (3) In the case of an assessee, being a foreign company, the provisions of section 44D 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 . ] 10 [ (4) In the case of an assessee having income chargeable under the head Income from other sources , no deduction in respect of any expenditure or allowance in connection with such income shall be allowed under any provision of this Act in computing the income by way of any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature, whatsoever : Provided that nothing contained in this sub-section shall apply in computing the income of an assessee, being the owner of horses maintained by him for running in horse races, from the activity of owning and maintaining such horses. Explanation. -For the purposes of this sub-section, horse race means a horse race upon which wagering or betting may be lawfully made. ] **************** NOTES:- 1. Numbered vide Section 8 of the Finance Act, 1968 w.e.f. 01-04-1968 2. Inserted vide Section 15 of the Finance Act, 1985 w.e.f. 01-04-1986 3. Sub-section (12) of section 40A was Omitted vide Section 17 of the Finance Act, 1992 w.e.f. 01-04-1993 4. Omitted vide Section 20 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, and in respect of which there is no person in India who may be treated as an agent under section 163 5. Omitted vide Section 12 of the Finance (No. 2) Act, 1971 w.e.f. 01-04-1972 before it was read as, (iv) any expenditure or allowance of the nature referred to in sub-clause (v) of clause (a) of section 40, notwithstanding that the amount thereof is included in the total income of any employee referred to therein; Earlier , Inserted vide Third Schedule of the Finance Act, 1968 w.e.f. 01-04-1969 6. Omitted vide Section 20 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, (b) in the case of a company, any expenditure or allowance of the nature referred to in clause ( c ) of section 40, notwithstanding that the amount thereof is included in the total income of any person referred to in sub-clause ( i ) of clause ( c ) of section 40. Earlier , Amended vide Section 7 of the Finance Act, 1963 w.e.f. 01-04-1963 And was Amended vide Third Schedule of the Finance Act, 1968 w.e.f. 01-04-1969 7. Inserted vide section 3 of the Income-tax (Amendment) Act, 1972 , w.e.f. 01-04-1962 subject to certain savings prescribed by section 5 of the Income-tax (Amendment) Act, 1972 regarding certain cases decided by the Supreme Court. 8. Inserted vide Section 8 of the Finance Act, 1968 w.e.f. 01-04-1968 9. Inserted vide Section 14 of the Finance Act, 1976 w.e.f. 01-06-1976 10. Inserted vide Section 14 of the Finance Act, 1986 w.e.f. 01-04-1987 11. Substituted vide Section 30 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as, sub-clause (iia)