On some cases employer prefer to give per Diem allowances to meet expenditures on lodging and boarding rather than payment on actual basic.
Are per diem allowances non taxable??
is income tax dept Circular No. 8 of 2005 reg non taxable of Per diem allowances still relevant
Per Diem is paid to employees in the form of relocation cost, insurance costs, living allowances, conveyance, travelling, driving lessons cost, accommodation, medical, destination costs etc. The taxability of Per Diem is provided in the Income Tax Act, 1961 where in case if the same is paid as part of salary then it would be treated as income unless it is paid to meet the expenses exclusively incurred in the performance of the duties of an office. For more details refer: https://www.taxsutra.com/experts/column?sid=641
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