Income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2018 Respected Sir,

I had a query regarding income tax. In my present company I am deputed in Qatar on short term basis (Business Visa), but am receiving salary in INR (Indian company). However, company is also giving allowance for overseas stay on per day basis(per diem in dollars). The company is deducting tax on full amount of allowance(TDS) irrespective of amount spent in overseas for day to day expenses. As per my understanding, per diem is tax free but if any amount is saved then it is included in taxable income. If so, will I be able to get a refund on the same. If yes then how?

Example
Salary INR 6 Lacs
Per Diem USD 80/day for 300 days = $ 24000
Allowance spent USD = &10000

Taxable Amount = ( INR 6Lacs + $ 24000 ) or ( INR 6Lacs + $ 14000 )