19 September 2007
I am usually sent abroad by my company and I am paid per diem by the company, this is in addition to the salary which I get in Indian rupees and on the salary the company does TDS.
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.
19 September 2007
IF YOU GIVE AN UNDERTAKING (IF AND WHEN ON BEING ASKED)THAT PER DIEM IS SPENT ON LOCAL EXPENSES OF FOOD,/BOARDING AND LODGING AND OUT OF POCKET EXP. LIKE LOCAL CONVEYANCE ETC..IT IS NOT TAXED. AS YOU ARE AN EMPLOYEE , TDS ASPECT IS TAKEN CARE OF BY YOUR EMPLOYER. C.A.R.V.RAO
19 September 2007
As i am saving from my per diem and getting the foreign exchange in India and getting it credited in my account, so what would happen in this scenario
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).
CAclubindia
