Income Tax Act Section 40(a)(iii): Non-deductibility of Salary Payments Abroad Without Tax Deduction or Payment Compliance.

Section 40(a)(iii) of the Income Tax Act addresses the non-deductibility of salary payments made outside India if certain conditions are met. Specifically, if salary is payable outside India to any person, whether resident or non-resident, or within India to a non-resident, and if tax has neither been paid nor deducted under Chapter XVII-B, such payments cannot be claimed as a deduction. These payments must be chargeable under the 'Salaries' head for the recipient, and tax must not have been paid to the government or deducted at source.