Foreign Travel Allowance

If you book this expenses in employees name than it will be taxable perquisite hence you have to include with salary and deduct tds on it…

Originally posted by : VITTAL G NAYAK
	Sir   We are paying employees those who travel foreign countries on business needs reimbursement of allowances like - Lodging & Boarding allowances (fixed amount) without taking any supportings or bills,  descretionary & week end allowances (this is also without any bills) . I would like know whether these expenses are taxable in the hands of employees . If so please guide me about the section in Income tax Act - under which it falls   Tahnks & Regards VITTAL NAYAK

if u book the expenses under travelling and conveyence , then not taxable in hands of employees 

Originally posted by : U S Sharma
	if u book the expenses under travelling and conveyence , then not taxable in hands of employees

Can you please point to some law/section  ?

My company gives an aroumt of Rs 2000 per day on travel in North America for covering of expenses. However, it wants to do TDS on any amount for which bill is not provided.

It is difficult to produce bills for example travelling by train, when often a returnable token is issued against a ticket.

Again things like eating in a small shop which does not give receipts, on tips paid via cash.

How are such things handled ?

Hi,

Anyone has answers to my question above ?