Section 94: amounts not deductible against income from other sources

What cannot be deducted

Irrespective of Section 93, the following are not deductible in computing income from other sources: personal expenses of the assessee; interest chargeable under the Act that is payable outside India, if tax on it has not been paid or deducted under Chapter XIX-B; and any payment chargeable under the head "Salaries" that is payable outside India, unless tax on it has been paid or deducted under Chapter XIX-B.

Other provisions that apply here too

Sections 29, 35(b)(i), and 36 (which govern certain business-income deductions) also apply, with necessary adaptation, when computing income from other sources. For a foreign company, Section 59 applies in the same way it applies to business income computation.

No deduction against lottery, gambling and betting winnings

In computing income from 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, no deduction for any expenditure or allowance related to that income is allowed under the Act.

This restriction does not apply to an assessee who owns and maintains horses for running in horse races, in respect of income from that horse-owning and maintaining activity.

What counts as a "horse race"

For this section, "horse race" means a horse race on which wagering or betting may lawfully be made.

Frequently asked questions