ENQUIRY ABOUT FOREIGN TOUR

Dear Gaurav, in my opinion, first you have to clarify whether the same is personal trip or an trip for business purpose. if it is the personal trip then the same cannot claimed as an allowable expenditure for the calculation of income tax, however you have enclose the copy of the ticket and evidenses for the expenses incurred such as lodging bill, food exp and conveyances etc. if it is business trip then you have to enclose the above details and the details of persons he has met during the visit and places visited along with the minutes of the meeting held with them.

You need to check whether it is a personal trip or business trip. Supose it is a business trip you need to keep all the records pertaining to the visit for e.g. tickets, hotel bills,food expenses. On the other hand if the business falls under the tax audit u/s 44AB of the I.T. Act, 1961 then the tax auditor might reflect this expenses in their Form 3CD. In addition to this you can show this expenses as business promotion expenses justifying the purpose of visit. If it is a personal tour, there is a way to treat this expenses in your business head to inflate the expenses and to know in detail u need to pay me professional fees and not to be discussed in public domain. Just Joking but if u think deeply you will get the answer.

Dear Gourav,

The expenses of foreign tour should be related to business object.
if yes, visa purpose is verifiable.
for documentary proof, receipt from tour agency, correspondence with the persons in abroad whom your partner met with is very important.
minute book is applicable in case of tour of directors in a company.

as your case concerns, the abroad tour expenses should be treated as personal expenses and should be shown in capital a/c of the partner.

thanks

ca kanta jain
durg-c.g