Unspent per Diem Taxability

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72 Points Posted on 27 July 2021
Whether Unspent per Diem is taxable in india ??
If yes what is the tax treatment (tax deducted in foreign country)?
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On 27 July 2021 at 11:14 Report
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Quick Summary
Unspent per diem received for business trips outside India is generally not taxable if fully expensed. However, any amount brought back to India is considered taxable income. If tax has already been deducted in a foreign country, Double Taxation Avoidance Agreements (DTAA) provisions may apply, impacting the overall tax treatment.

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Chartered Accountant
24588 Points Posted on 27 July 2021
The per diem amount is not taxable in India if you spend all of it while you are on a business trip outside India. But do remember that any unspent amount, if brought back to your home country like India, is counted as your income which should be taxed
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On 27 July 2021 at 11:34
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72 Points Posted on 27 July 2021
If tax deducted there in foreign country
what are the provisions of tax in income tax act?
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On 27 July 2021 at 11:52
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Chartered Accountant
24588 Points Posted on 27 July 2021
Then DTAA is applicable
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On 27 July 2021 at 16:31

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