Income Tax treatment for the foreign exchange earned as per diem
Sometimes the perdiem is paid in India in cash ( in foreign exchange) and sometimes it's paid abroad in cash. I save from this per diem allowance and which i take back to India and get it credited to my account.
Do I need to pay tax on this amount or there is any provision thru which I can save. I am in the highest tax bracket.
AS YOU ARE AN EMPLOYEE , TDS ASPECT IS TAKEN CARE OF BY YOUR EMPLOYER.
As Mr Rao rightly said Per diem is for Local Expenses. The Employer and the Department Expects that such per diem p day would be utilised the same day. If u have any saving that is taxable and sorry sir there is not way out to save also your are depositing that in the account.
As you may be aware all the credit trx in your passbook had to have the explanation ( I mean the income side).