# Other Deductions [Section 36]
Section 36 lists specific expenses allowed as deductions in computing business income.
## Insurance & employee benefits
| Section | Deduction |
|---|---|
| 36(1)(i) | Stock insurance premium |
| 36(1)(ib) | Employee health insurance premium borne by the assessee — allowed only if paid other than in cash |
| 36(1)(ii) | Bonus or commission to employees — but not if paid in substitute of dividend |
> Insurance on plant & machinery is allowed separately under Section 31, not 36(1)(i).
## Interest and discount
| Section | Deduction |
|---|---|
| 36(1)(iii) | Interest on borrowed capital used for business. If the loan funds a fixed asset, interest up to the date first put to use is capitalised to actual cost [Expl. 8 to 43(1)]; interest after that is deductible |
| 36(1)(iiia) | Discount on Zero Coupon Bonds (ZCB) — allowed on a pro-rata basis each year: Discount ÷ Life of bond (in months). Discount = Maturity amount payable − Issue price received |
## Contributions to welfare funds
| Section | Deduction |
|---|---|
| 36(1)(iv) | Employer's contribution to RPF / Superannuation fund within prescribed limits (subject to Sec. 43B) |
| 36(1)(iva) | Employer's contribution towards NPS u/s 80CCD — up to 14% of salary of the employee |
| 36(1)(v) | Employer's contribution to an Approved Gratuity Fund (subject to Sec. 43B) |
| 36(1)(va) | Employees' contribution to welfare funds — deductible only if remitted within the due dates under the respective fund's governing law |
### Important nuances
- Salary for NPS [36(1)(iva)] = Basic + DA (for retirement benefits) + Commission (if as a % of turnover).
- Employees' contribution [36(1)(va)]: Amounts collected from employees are first treated as income of the employer u/s 2(24)(x). The deduction is allowed only if remitted to the fund within the due date under the relevant Act. Section 43B never applies to this employees' contribution — so the due date is the statutory fund due date, not the income-tax return due date.