Reg: reading a section number

This query is : Resolved

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)
Follow

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 online

(Expert)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok