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Per diem allowance

This query is : Resolved 

16 February 2013 per diem allowance(daily allowance)paid by Indian co. to its employee at the place of posting outside India is taxable or not?
And under which section of IT Act,1961?

16 February 2013 It is neither taxable in India nor abroad if spent fully for the purpose for which it has been given. But any unspent amount, if brought back to home country, makes it eligible for income tax in the home country.
Inference - section 10(14)(i) and rule 2BB.


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