Treatment of foreign exchange for foreign travelling

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2018 Hi,
My Company sends some employees abroad for official work and provide them some dollars for the trip.
On return, he submitted few bills and remaining he returned to us and which our company had sold to back to Authorized Dealer.
On verification of few bills it was found that he was unable to get few bills but he had incurred the same during the tour and company had allowed him same to some extent.
My query is:
1. Whether TDS is deductible or not (under head salary or any other head) for the portion for which bills are not submitted but still reimbursed to the employee?
2. Whether company has to treat foreign exchange gain/loss for the difference in sale and purchase value of foreign exchange as business Income Profit/ Loss or Capital Gain/Loss or to be considered in Income under Other Heads?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 April 2018 1. No TDS.

2. Gain or loss may be routed through 'foreign travel expenses a/c'.

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2018 How come no TDS, when it is written in Income Tax Act'1961, that any allowance given to an employee is exempt to the extent of expenditure submitted

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