Foreign Income is Taxable?

If it is all money incurred on all your day to day expense it is not taxable but have to pay perquisite as per notification no.94/2009

I am  understand from your question is Indian employer transferred US dollar in your travel card every month for expenses and you have to submit all expenses bill, supporting voucher for the same. When you get back balance amount from travel card bank you have to pay your Indian employer that time make sure payment make through the personal cheque because in future any query come from authority easy to verification  through you are bank statement it is not your income. No tax

If u will keep that excess money with u then of cource it will be taxable under the head salary.

Thanks Sankalp and Pratik,

Pratik as you said if I keep that money with me I have to pay tax, can you please suggest an alternate way to save tax.

Thanks

For this i have to see all your details of income....

The Excess amount should be taxable as persiquite:-

Total Amount received from employer

(-) Amount of expenditure you had spent as per bill (i.e. Exp. of Bill)

Originally posted by : Jack
	Hi Everybody, I am new to this site, I need your help. I am working in an IT company. There was a project going on onsite in Zurich, switzerland. So my company sent me there for 5 months, with few conditions like 1. I will not get any salary from india. 2. My company will provide me a AXIS bank travel card with my name. 3. Every month my company will transfer USD (US doller) to my Travel card on per diem basis. Now I came back to India and I am having some amount remaining in my travel card. I have to surrender this card to AXIS bank and then bank will give me a check on behalf of my name. I just want to ask you, is that amount is taxable? If yes would you please suggest how can I save tax for the same.   Thanks, Sandeep

HI,

As you said that you are getting per Diem to cover your expenses while you are on your on client location, following points needs to be considered.

1. As you are receiving Per Diem in US and by the virtue of you residing in US for less than 182 days, you need to file 1040NR in US.

2. You can claim all your expenses (Rent, Conveyance, Utilities) on form 2106 along with Form 1040NR.

3. As per the Double taxation avoidance treaty between US and India, an Non Resident in US hailing from india can claim "Itemization" option rather than the standard deduction.

4. Since you continue to be a resident in India for the current Assessment year, you still need to file  your tax return in India. 

5. What ever tax you are paying as a Non Resident in US can be claimed as FTC when you are taxing your perquesite again in India.

6. If you don't want to pay tax in India and again claim FTC credit, Please negotiate with your company to allow you to refund the savings on your per diem on to your  US  bank account and not to your Indian Bank account.

Please let me know if you need further details.