Salary payment of ₹2,00,000 made outside India by XYZ Ltd., an Indian company, to Ram without deduction of tax at source.
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
Salary payment of ₹2,00,000 made outside India by XYZ Ltd., an Indian company, to Ram without deduction of tax at source.
Answer & Explanation:
Not allowable as Deduction: As per section 40(a)(iii) of the Income Tax Act, 1961, salary paid outside India without deduction of Tax is not allowed as deduction. Therefore payment of salary to Ram outside India without deduction of Tax is disallowed as deduction.
Topics: Income Tax Act, 1961
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