Reg: reading a section number

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2017 Hi,
Can any one help me in identifying difference between subsection and clause in Income Tax Act?

Thanks in Advance.

Rahul varshney

Rahul varshney (Expert)
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22 August 2017 Subsections are the further division of Section, whereas Clause is the clarification or which provide additional information about Section.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2017 Thanks for reply. Can i have one example so i can understand it better? Ex: sec.40(a)(ia) and sec.40A(2) how these can be read as?? Thanks in advance

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 Great question! Understanding how to read sections, sub-sections, clauses, and sub-clauses in the Income Tax Act is important for interpretation and writing in exams or practice.

Let’s break it down clearly with examples:

🔹 Basic Structure of a Section in Income Tax Act:
Section → The main provision
Sub-section → Numbered in brackets: (1), (2), etc.
Clause → Denoted by letters: (a), (b), (c)
Sub-clause → Denoted by Roman numerals: (i), (ii), (iii)
✅ Example 1: Section 40(a)(ia)
📖 Read as:

“Section 40, sub-section (a), clause (ia)”
✅ Breakdown:

Section 40: Deals with amounts not deductible.
Sub-section (a): Lists certain payments that are disallowed if TDS provisions are not complied with.
Clause (ia): Refers specifically to disallowance of 30% of expenditure on which TDS is deductible but not deducted or paid.
✅ Example 2: Section 40A(2)(b)
📖 Read as:

“Section 40A, sub-section (2), clause (b)”
✅ Breakdown:

Section 40A: Special provisions related to disallowance of certain expenditures.
Sub-section (2): Deals with payments to related persons that may be unreasonable.
Clause (b): Specifies who is considered a "related person".
📝 Quick Tip:
You can visualize the hierarchy like this:

Section 40A
└── Sub-section (2)
└── Clause (b)
└── Sub-clause (i), (ii), etc. ← if further division exists

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