Section 58 of ITA, 1961 : Section 58: Amounts Not Deductible

Explanation using Example

Imagine Mr. Sharma receives rental income from a property he owns, which is categorized under "Income from other sources" in his tax return. He also took a personal vacation to Europe and paid for it with his credit card. When preparing his tax return, Mr. Sharma considers deducting the vacation expenses against his rental income. However, according to Section 58(1)(a)(i) of the Income-tax Act, 1961, personal expenses cannot be deducted from income charged under the head "Income from other sources." Therefore, Mr. Sharma cannot claim his European vacation expenses as a deduction against his rental income.