453. Agreements in relation to deductions.

Every agreement for payment of interest, rent or other annual payment in full without allowing deduction of tax is void1, but there is no prohibition against a provision in an agreement that interest etc is to be such an amount as after deduction of income tax for the time being in force will amount to a fixed yearly sum2. In such a case the deduction allowable in computing total income is the amount of the fixed yearly sum plus the appropriate addition for income tax