Income tax on oustation allowance
Querist : Anonymous
Now I am deputed in Germany for a 1 year period (This is the first time I am abroad). I'm getting salary from Indian IT Company in my Indian bank account and Outstation allowance in German bank account.
My salary in India is 7 Lakhs per year. [Income tax is deducting from my Indian salary]
Outstation Allowance in Germany is 10 Lakhs per year paid by Indian company. [Not paying the tax in Germany and India for this allowance]. I am saving half of the allowance and transfers to Indian bank account.
Should I pay the income tax to India for the full outstation allowance / Can I show any deductions as expense in Germany?
By reading the NRI criteria of Income tax laws, come to know that if I come to India for a 60 days in this year (with 365 days in India in previous 4 years) myself will be considered as Resident Indian.
Is there any advantage in Tax by coming to India for a 60 days this year / Is it better to continue for this full financial year here in Germany?
Querist : Anonymous
This outstation allowance is paid by my Indian IT Company.
Is it possible to consider this as increased cost of living (section 10(14) of the Indian Income Tax Act) ?
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