Section 57 → Section 76
Deductions under Income from Other Sources
Quick Answer
Section 57 of the Income Tax Act, 1961 (Deductions under Income from Other Sources) corresponds to Section 76 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 57
In the 1961 statute, Section 57 deals with deductions under income from other sources. Allows deductions for expenses wholly and exclusively incurred for earning 'other sources' income.
The new code maps this to Section 76: the provision is retained and renumbered as Section 76 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Specifically restricts deductions against dividend income to interest expense only, capped at 20% of the dividend.
On the ground, changes to Section 57 carry a Medium impact. Dictates net taxable IFOS.
Sec 57
Provision Summary
Allows deductions for expenses wholly and exclusively incurred for earning 'other sources' income.
Sec 76
Provision Summary
Retained. Specifically restricts deductions against dividend income to interest expense only, capped at 20% of the dividend.
Key Changes & Highlights
- Standard deduction for family pension maintained.
Related Sections
Frequently Asked Questions
What does Section 57 of the Income Tax Act 1961 deal with?
Section 57 of the Income Tax Act, 1961 covers deductions under income from other sources. Allows deductions for expenses wholly and exclusively incurred for earning 'other sources' income.
Where does Section 57 of the ITA 1961 go under the Income-tax Act, 2025?
Section 57 of the Income Tax Act, 1961 maps to Section 76 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Specifically restricts deductions against dividend income to interest expense only, capped at 20% of the dividend.
Why does the change to Section 57 matter for taxpayers?
The transition impact for Section 57 is rated Medium. Dictates net taxable IFOS.
What are the key changes to Section 57 under the Income-tax Act, 2025?
Standard deduction for family pension maintained. These points are specific to Section 57 (Deductions under Income from Other Sources).
Disclaimer: This mapping of Section 57 (Deductions under Income from Other Sources) to Section 76 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 57 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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