Taxability of allowance

This query is : Resolved

CA.Varalakshmi.M

CA.Varalakshmi.M (Querist)
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15 April 2013 Hello Experts,

One of our employee had gone to US on official work for one week.

Apart from travel charges, Accommodation and food charges we have paid him DA of $50 per day .No need to provide any bills for that DA.

Is this DA taxable i.e do we need to add this DA amount to his income and deduct TDS .

Thanks in Advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 April 2013 It is in the nature of per diem allowance and exempted from Income tax

Per-diem allowance is exempt from tax under section 10(14)(i) read with Rule 2BB, as it is an allowance granted and spent to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty

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