Section 58

Amounts not deductible.

58. (1) Notwithstanding anything to the contrary contained in section 57, the following amounts shall not be deductible in computing the income chargeble under the head "Income from other sources", namely:

(a) in the case of any assessee

(i) any personal expenses of the assessee;

(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 and in respect of which there is no person in India who may be treated as an agent under section 163;

(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;

¹[(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;

(b) in the case of a company, any expenditure or allowance of the nature referred to in clause (c) of section 40, nowithstanding 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.

(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."

[As amended by Finance (No. 2) Act, 1971 and Taxation Laws (Amendment) Act, 1970]