This discussion clarifies whether personal expenses incurred during a business trip, such as airfare for a personal excursion, can be claimed as tax-exempt. The consensus is that personal trips, even when combined with business travel, are not eligible for tax exemption. Only the portion of expenses directly attributable to the business purpose of the trip can be considered for tax purposes.
04 January 2024
Hi, This is regarding opinion on the eligibility of taxable exemption against the DA on Business trip. One of our member went for business trip for a week to Germany and in between he went to personal trip spend amount on air ticket from the portion of DA amount Now requesting to exempt the same air ticket amount considering part of business trip. would the personal trip can be considered part of business trip and provide exemption- Request conclusive opinion.
04 January 2024
The reimbursed amount is exempt from tax for the employee. There is no deduction for travelling expenses incurred on personal trips. In the case of combining personal trips with business trips, a deduction is available only for the portion attributable to the business