I work in a project based company.They are sending me to a Gulf country for 90 days. I will be paid INR 8000 per day as the site allowance. Besides that I am getting INR 18000 per month from my indian employer. I want to know that whether this allowance will be taxable or not. If it is taxable, then tell me about the law about this.
02 June 2012
You can claim exemption of allowance as its incurred performing official duty. Your salary ,if not under exemption limit,will be taxable in India