Company's Provident Fund Deductions Valid with Tax Compliance Confirmation from Trust Secretary under Section 40(a)(iv)
Section 40(a)(iv) of the Income Tax Act states that payments to a provident fund are not deductible if the payer has not ensured tax deduction at source from payments chargeable under "Salaries." In a case involving a company-established provident fund, the court held that informing the trust's secretary about tax deduction requirements and receiving confirmation of compliance constituted an effective arrangement as required by the law.