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Clarification on Software Royalty Payments Under Indian Income Tax: Not Disallowed by Section 40(a)(i) if Falling Under Explanation 4.
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....When the royalty for transfer of right to use of computer software does not fall under Explanation 2 to sec. 9(1)(vi), but the same falls under Explanation 4 to sec. 9(1)(vi), then in view of the Explanation to sec. 40(a)(i), the amount cannot be disallowed under the provisions of sec. 40(a)(i) of the Act - AT....