Section 40

CA. Niranjan Kumar (Student) (276 Points)

11 April 2012  

 

No TDS deducted on Salary payment in India to a resident, whether such payment is allowed u/s 40 or not?
 
I think it is allowed u/s 40, since it is paid in India and to resident. Section 40 requires deduction of TDS form salary in case of payment:-
a) outside India
b) in India to Non resident
Since Salary payment in India to a resident is not covered under section 40, that is why it is allowed, even though TDS had not been deducted. Am i right? Please Clear.
 
Thanks you for giving your valuable time to  clear my doubt.