Deductions not allowable (section 58)

No deduction shall be made in computing the Income from other sources of an assessee in respect of the following items of expenses: 1. In the case of an assessee: a> any personal expenses of the assessee. b> any interest chargeable to tax under the Act which is payable outside India on which tax has not been paid or deducted at source. c>Any payable taxable in India as salaries, if it is payable outside India unless tax has been paid thereon or deducted at source. 2. In addition to these disallowances, section 58(2) specifically provides that the disallowances of payments to relatives and associate concerns and disallowances of payment or aggregate of payments exceeding rs.20000 made to a person during a day otherwise than by account payee cheque or draft covered by section 40A will be applicable to the computation of income under the head income from other sources as well. 3. Income tax and wealth tax paid. 4. No deductions in respect of any expenditure or allowance in connection with income of any or nature. By way of earnings by lottries, cross word puzzles, races including horse races, card games and other games of any sort of form gambling or betting. The prohibition will not, however apply in respect of the income of an assessee, being the owner of the race horses, from the activity and owning such horses. In respect of the activity of owning and maintaining race horses, expenses incurred shall be allowed even in the absence of any stake money earned. Such loss shall be allowed to be carried forward in accordance with the provision of the section 74A.