Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Per Diem Savings Taxable

3063 views 1 replies

Sasi

eng

24 Points Posted on 02 March 2010

Hi All,

I am currently in US for 1 month . I get per diem allowance of 60 USD . According to my company , i need to submit bills for all the expenses and the unutilized amount will be chargable.Is the unutilized amount taxable? and for many services (like laundary, news papaer, vending machine cookies , ) we may not get receipt as well..which means we are spending lot of money for the food ,but we wont get any receipt.

What one will do in this scenario? Can we give self declarations? Please suggest

Thanks

Sasidhar

Replies (1)

Amir

Learner

4016 Points Posted on 02 March 2010

Dear Sasi,

Unutilized per diem allowance is taxable.....or as u have said "saving" from per diem......

U r rite that it is not possible to get bills/supportings of each n every expenditure. therefore the self declaration would do in such cases but again this practical difficulty should not be taken as exception to the rule....And supportings/bills should be preserved in respect of majority of expenditures......

Generally its the employers policy which decides I mean some employers ask for bills for at least 80% of total expenditure, etc

So, No requirement that bills should be available for each item of expense but u have u establish a fact so keep that in mind...............