Taxabilty..... pls help

It will be exempt to the amount spent.... but taxable to the amount saved.....

Thank you Sir.

Could you please let me know the taxability if I receive the whole amount in foreign exchange out of India.

Br,

Avinash

per-diem-allowance-taxable-in-india

per-diem-allowances-taxable-india

Taxability of per diem allowance - view

Dhirajlal Sir , few case laws suggests that " reasonable " per-diem (whether actually spent or not ) will be tax free in hands of the " employee " even an old CBDT circular (related to fringe benefits tax (FBT)/ CIRCULAR NO. 8/2005, DATED 29-8-2005)  states " the employees will not be liable to pay income-tax on any surplus accruing to him from such allowance." (though this circular is irrelevant now ) >>


 Even if we go by the word " reasonable " then question arises what actually should be considered reasonable ? As per my understanding the Ministry of External affairs (MEA) maintains a list  of " per diem " which it pays to its employees when they are on tour to foreign countries ..so can that be taken as reference value in context of " reasonable " per-diem ? whats your view on this ?

Dear Mr. Saifulla Khalid...... rightly pointed out...... 

But no clear cut specified rule..... It is at the discretion of assessing officer !!!

And the whole matter has nicely been analyzed by  Shri Pramod Achuthan (Partner, Ernst & Young LLP, India)  And Shri Jagdeep Sadhale (Senior Manager, Tax and regulatory services, Ernst & Young LLP)

in that third link......  Taxability of per diem allowance - A 360 degree view  with all the recent judgements of the courts.

Dhirajlal Sir and Saifullah Sir

Thank you for the explanation.

However Sir, I would like to state here that I was out of India for more than 182 days. (That makes me a Non Resident)

The perdiem that I got is neither accrued in India nor received in India.

So will the unspend perdiem bought back to India through NRE account be taxable in India, given the fact that I was a Non resident in the PY 2017-18.

I am stuck in the Non Resident point as I am not getting any clarification on this point.

Sorry to bother you.

Br,

Avinash

Originally posted by : Avinash
	Dhirajlal Sir and Saifullah Sir Thank you for the explanation. However Sir, I would like to state here that I was out of India for more than 182 days. (That makes me a Non Resident) The perdiem that I got is neither accrued in India nor received in India. So will the unspend perdiem bought back to India through NRE account be taxable in India, given the fact that I was a Non resident in the PY 2017-18. I am stuck in the Non Resident point as I am not getting any clarification on this point.   Sorry to bother you. Br, Avinash

Dear Avinash , Your specific  case (IMO) has two plus points First your status being NRI with " NRE " account and second that the allowance were not remitted to you from Indian susidiary of your company . So in your case tax liabilty (if any ) will be foreign country subject and they should have deducted taxes as per the prevailing law of that country ... the most important point is that the foreign earning you earned abroad will be remitted back by you in your NRE account and holding a NRE account  itself proves your status as proper NRI  SO IMO your unspent per diem/other earnings are not taxable in India...