Income Tax Act, 2025
Section 1: Ins. by 27 of 1999, s. 21 (w.e.f. 12000).
1. Ins. by 27 of 1999, s. 21 (w.e.f. 12000).
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36. Other deductions.—(1) The deductions provided for in the following clauses shall be allowed in
respect of the matters dealt with therein, in computing the income referred to in section 28—
(i) the amount of any premium paid in respect of insurance against risk of damage or destruction
of stocks or stores used for the purposes of the business or profession;
1[(ia) the amount of any premium paid by a federal milk co-operative society to effect or to keep
in force an insurance on the life of the cattle owned by a member of a co-operative society, being a
primary society engaged in supplying milk raised by its members to such federal milk co-operative
society;]
2[(ib) the amount of any premium paid by any mode of payment other than cash by the assessee
as an employer to effect or to keep in force an insurance on the health of his employees under a
scheme framed in this behalf by—
(A) the General Insurance Corporation of India formed under section 9 of the General
Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central
Government; or
(B) any other insurer and approved by the Insurance Regulatory and Development Authority
established under sub-section (1) of section 3 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999);]
(ii) any sum paid to an employee as bonus or commission for services rendered, where such sum
would not have been payable to him as profits or dividend if it had not been paid as bonus or
commission;
3* * * * *
4* * * * *
(iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business
or profession:
5[Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of
an asset 6*** (whether capitalised in the books of account or not); for any period beginning from the
date on which the capital was borrowed for acquisition of the asset till the date on which such asset
was first put to use, shall not be allowed as deduction.
Explanation.—Recurring subscriptions paid periodically by shareholders, or subscribers in
Mutual Benefit Societies which fulfill such conditions as may be prescribed, shall be deemed to be
capital borrowed within the meaning of this clause;
7[(iiia) the pro rata amount of discount on a zero coupon bond having regard to the period of life
of such bond calculated in the manner as may be prescribed.
The deductions provided for in the following clauses shall be allowed in
respect of the matters dealt with therein, in computing the income referred to in section 28—
the amount of any premium paid in respect of insurance against risk of damage or destruction
of stocks or stores used for the purposes of the business or profession;
1[
the amount of any premium paid by a federal milk co-operative society to effect or to keep
in force an insurance on the life of the cattle owned by a member of a co-operative society, being a
primary society engaged in supplying milk raised by its members to such federal milk co-operative
society;]
2[
the amount of any premium paid by any mode of payment other than cash by the assessee
as an employer to effect or to keep in force an insurance on the health of his employees under a
scheme framed in this behalf by—
the General Insurance Corporation of India formed under section 9 of the General
Insurance Business
Act, 1972 (57 of 1972) and approved by the Central
Government; or
any other insurer and approved by the Insurance Regulatory and Development Authority
established under sub-section
of section 3 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999);]
any sum paid to an employee as bonus or commission for services rendered, where such sum
would not have been payable to him as profits or dividend if it had not been paid as bonus or
commission;
3* * * * *
4* * * * *
the amount of the interest paid in respect of capital borrowed for the purposes of the business
or profession:
5[Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of
an asset 6*** (whether capitalised in the books of account or not); for any period beginning from the
date on which the capital was borrowed for acquisition of the asset till the date on which such asset
was first put to use, shall not be allowed as deduction.
Explanation.—Recurring subscriptions paid periodically by shareholders, or subscribers in
Mutual Benefit Societies which fulfill such conditions as may be prescribed, shall be deemed to be
capital borrowed within the meaning of this clause;
7[
the pro rata amount of discount on a zero coupon bond having regard to the period of life
of such bond calculated in the manner as may be prescribed.