About Perdium Expense

hi all,

kindly any one explain briefly about perdium expense & how that will be calculated & how that is to be considered on tax purpose.

Thanks in advacnce

Bahubali

Replies (3)

er diem (Latin for "per day" or "for each day") refers to a specific amount of money that an organization allows an individual to spend per day, to cover living and traveling expenses in connection with work. It is the allowance given to the employee/worker for completing a task or going on tour away from home.

thanks for ur early reply sir, & one more i need to know is that the amount paid by cash for such is it considered & is there any limit for per day amount, kindy clarify

Thanks in advance

There is no limit.. but yes it should be reasonable.. like per diem made for travellin exp, meals a day etc.. 100 Rs per day would be reasonable..It is an allowed expense if incurred for connection of business..

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