alleryStart learning →Royalty payable to a non-resident without TDS is treated how in business income?
AAllowed at half
BWholly disallowed
CAllowed in full
DAllowed at 30 percent
Answer & Solution
Correct answer: B. Wholly disallowed
Section 40(a)(i) bars deduction of royalty or technical fees payable abroad or to non-residents when tax was not deducted or paid.
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