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INCOME TAX QUERRY

This query is : Resolved 

06 March 2011 IS SALARY PAID TO EMPLOYEES IN CASH ALLOWABLE AS DEDUCTIONS UNDER THE HEAD PGBP

06 March 2011 1)As per section 40(a)(iii),if the salary is paid out side india or to a non resident and if income tax is not deducted thereon, such salary will be disallowed while computing PGBP.
2)Salary paid to resident employees in India in cash is allowed as a deduction while calculating PGBP in those cases covered under rule 6DD(i) of the Income tax Rules,1962.


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