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Tax on income earned on short term business visa trip

Tax queries 297 views 2 replies

Vivek B

6 Points Posted on 04 July 2017

Hello,

I need some clarification on tax on income earned during business visa trip.

My company pays me in USD, to manage my expenses during foreign business trip. And the balance USD after spending in trip will be credited to my indian account.

For example: USD 1000 handed over to me for my expense in foreign trip. Say, i spent USD800 in trip. So, the balance USD200 will be credited to my savings account.

Now my question is

1)Should i declare this USD 200 income in IT return?

2) Is this income taxable?

3) If yes, any relevant section to declare this income?

Replies (2)

neeraj gupta

1138 Points Posted on 04 July 2017

The company itself should have taken care of it. Check your Form-16 attachment, there should be mention of this.

Vivek B

6 Points Posted on 14 July 2018

The USD was paid via travel card which can be used for POS swipping/ATM withdrawal in any foreign countries, but not in india.

This is a travel allowance/per diem. Some part of the amount is for managing my out of pocket expenses during the travel. My company assumes that the money paid for out of pocket expenses is spent completely during the travel itself.

So ideally this is not reported in form-16. My doubt is the savings out of this allowance comes under income?