30 December 2009
My present company client given Per diem allowance to their employee who were going to Official Tour.The per diem eligilibilty is Rs.300/- per day without submit the bill.although the per diem is in lieu of Lunch,Breakfast,Laudry etc in the tour.
Pl confirm wheater that is Taxable as a perquisite in the hands of Employee.
30 December 2009
The per diem allowance will not be taxed in the hands of the employee who is an Indian citizen and a non-resident for 2009-10.
Circular No.8 of 2005 has clarified that per diem allowance to employees on tour abroad will not be taxable in the hands of employees even if it is not fully spent.