Section 63 of Income Tax Act 1961- “Transfer” And “Revocable Transfer” Defined

Section 63 of Income Tax Act 1961- "Transfer" And "Revocable Transfer" Defined:

For the purposes of sections 60, 61 and 62 and of this section, -

(a) A transfer shall be deemed to be revocable if -

(i) It contains any provision for the re-transfer directly or indirectly of the whole or any part of the income or assets to the transferor, or

(ii) It, in any way, gives the transferor a right to re-assume power directly or indirectly over the whole or any part of the income or assets;

(b) "Transfer" includes any settlement, trust, covenant, agreement or arrangement

Section 62 of Income Tax Act 1961- Transfer Irrevocable For A Specified Period

Section 62 of Income Tax Act 1961- Transfer Irrevocable For A Specified Period:

(1) The provisions of section 61 shall not apply to any income arising to any person by virtue of a transfer -

 (i) By way of trust which is not revocable during the lifetime of the beneficiary, and, in the case of any other transfer, which is not revocable during the life time of the transferee; or

 (ii) Made before the day of April, 1961, which is not revocable for a period exceeding six years :

Provided that the transferor derives no direct or indirect benefit from such income in either case.

(2) Notwithstanding anything contained in sub-section (1), all income arising to any person by virtue of any such transfer shall be chargeable to income-tax as the income of the transferor as and when the power to revoke the transfer arises, and shall then be included in his total income.

Section 61 of Income Tax Act 1961- Revocable Transfer Of Assets

Section 61 of Income Tax Act 1961- Revocable Transfer Of Assets:

All income arising to any person by virtue of a revocable transfer of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his total income.

Section 60 of Income Tax Act 1961- Transfer Of Income Where There Is No Transfer Of Assets

Section 60 of Income Tax Act 1961- Transfer Of Income Where There Is No Transfer Of Assets:

All income arising to any person by virtue of a transfer whether revocable or not and whether effected before or after the commencement of this Act shall, where there is no transfer of the assets from which the income arises, be chargeable to income-tax as the income of the transferor and shall be included in his total income.

Section 59 of Income Tax Act 1961-Profits Chargeable to Tax

Section 59 of Income Tax Act 1961-Profits Chargeable to Tax:

(1) The provisions of sub-section (1) of section 41 shall apply, so far 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".

Section 58 of Income Tax Act 1961- Amounts Deductible

Section 58 of Income Tax Act 1961- Amounts Deductible:

(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;

(ia) Any expenditure of the nature referred to in sub-section (12) 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

(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;

(1A) The provisions of sub-clause (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".

(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".

 (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".

(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.

Section 57 of Income Tax Act 1961-Deductions

Section 57 of Income Tax Act 1961-Deductions:

The income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely :- (i) In the case of dividends or interest on securities, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee;

 (ia) In the case of income of the nature referred to in sub-clause (x) of clause (24) of section 2 which is chargeable to income-tax under the head "Income from other sources", deductions, so far as may be, in accordance with the provisions of clause (va) of sub-section (1) of section 36;

 (ii) In the case of income of the nature referred to in clauses (ii) and (iii) of sub-section (2) of section 56, deductions, so far as may be, in accordance with the provisions of sub-clause (ii) of clause (a) and clause (c) of section 30, section 31, and sub-sections (1), and (2) of section 32 and subject to the provisions of section 38;

(iia) In the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less.

 Explanation : For the purposes of this clause, "family pension" means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death;

(iii) Any other expenditure (not being in the nature of capital expenditure)

laid out or expended wholly and exclusively for the purpose of making or earning such income .