Per diem allowance taxability

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