Income Tax Act, 2025
Section 13: Ins. by Act 32 of 1985, s. 15 (w.e.f. 11986).
13. Ins. by Act 32 of 1985, s. 15 (w.e.f. 11986).
14. The words “and in respect of which there is no person in India who may be treated as in agent under section 163”
omitted by Act 26 of 1988, s. 20 (w.e.f. 11989).
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3[(1A) The provisions of 4[sub-clauses (ia) and (iia)] of clause (a) of section 40 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”.]
5[(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”.]
6[(3) In the case of an assessee, being a foreign company, the provisions of section 44D 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”.]
7[(4) In the case of an assessee having income chargeable under the head “Income from other
sources”, no deduction in respect of any expenditure or allowance in connection with such income shall
be allowed under any provision of this Act in computing the income by way of any 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, whatsoever:
Provided that nothing contained in this sub-section shall apply in computing the income of an
assessee, being the owner of horses maintained by him for running in horse races, from the activity of
owning and maintaining such horses.
Explanation.—For the purposes of this sub-section, “horse race” means a horse race upon which
wagering or betting may be lawfully made.]
59. Profits chargeable to tax.—(1) The provisions of sub-section (1) of section 41 shall apply, so far
as may be, in computing the income of an assessee under section 56, as they apply in computing the
income of an assessee under the head “Profits and gains of business or profession”.
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CHAPTER V
INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME
60. Transfer of income where there is no transfer of assets.—All income arising to any person by
virtue of a transfer whether revocable or not and whether effected before or after the commencement of
this Act shall, where there is no transfer of the assets from which the income arises, be chargeable to
income-tax as the income of the transferor and shall be included in his total income.
61. Revocable transfer of assets.—All income arising to any person by virtue of a revocable transfer
of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his
total income.
62. Transfer irrevocable for a specified period.—(1) The provisions of section 61 shall not apply to
any income arising to any person by virtue of a transfer—
(i) by way of trust which is not revocable during the lifetime of the beneficiary, and, in the case
of any other transfer, which is not revocable during the lifetime of the transferee; or
The provisions of 4[sub-clauses
and
of section 40 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”.]
5[
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”.]
6[
In the case of an assessee, being a foreign company, the provisions of section 44D 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”.]
7[
In the case of an assessee having income chargeable under the head “Income from other
sources”, no deduction in respect of any expenditure or allowance in connection with such income shall
be allowed under any provision of this Act in computing the income by way of any 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, whatsoever:
Provided that nothing contained in this sub-section shall apply in computing the income of an
assessee, being the owner of horses maintained by him for running in horse races, from the activity of
owning and maintaining such horses.
Explanation.—For the purposes of this sub-section, “horse race” means a horse race upon which
wagering or betting may be lawfully made.]
59. Profits chargeable to tax.—
The provisions of sub-section
of section 41 shall apply, so far
as may be, in computing the income of an assessee under section 56, as they apply in computing the
income of an assessee under the head “Profits and gains of business or profession”.
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CHAPTER V
INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME
60. Transfer of income where there is no transfer of assets.—All income arising to any person by
virtue of a transfer whether revocable or not and whether effected before or after the commencement of
this Act shall, where there is no transfer of the assets from which the income arises, be chargeable to
income-tax as the income of the transferor and shall be included in his total income.
61. Revocable transfer of assets.—All income arising to any person by virtue of a revocable transfer
of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his
total income.
62. Transfer irrevocable for a specified period.—
The provisions of section 61 shall not apply to
any income arising to any person by virtue of a transfer—
by way of trust which is not revocable during the lifetime of the beneficiary, and, in the case
of any other transfer, which is not revocable during the lifetime of the transferee; or