Daily allowance for foreign travel

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2012 Dear Sir,

This is related to foreign allowance to company staff. As per our company policy we would like to give Foreign travel allowance to our staff for foreign travel.

In this case this allowance need to add in salary/ Form 16 ? and salary TDS need to deduct or not on this?

Regards

CA. Rahul Dwivedi

CA. Rahul Dwivedi (Expert)
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24 April 2012 Here two thing are to be kept in Mind :
1)If you are reimbursing the expenses incurred on foreign travel then it will not for part of form 16, however amount paid should have supporting.
2) If you have a fixed amount for foreign travel than the same will be termed a allowance & same will be liable to tax as salary & TDS will be applicable as per slab.

"The above views are my own view on the basis of my understanding of Law however you can take one more openon before come to a conclusion"