Failure to deduct tax at source in accordance with the provisions of Chapter XVII-B from the amounts payable to a resident as rent or royalty will not result in disallowance of the expenditure thereof while computing the

False: Section 40(a)(ia) of the Income Tax Act, 1961, provides that failure to deduct tax at source for rent or royalty payable to a resident in accordance with the provisions of Chapter XVII-B will result in disallowance of an amount of 30% of such expenditure, where the resident payee has not paid the tax due on such income.