07 January 2010
An employee goes to US for a project. he gets per diem. If the amount remaining after all expenses is transfered to Indian Bank A/c, is this amount taxable? If it yes, under which head other sources or salary?
07 January 2010
The per diem allowance will not be taxed in the hands of the employee who is an Indian citizen and a non-resident for 2009-10.
Circular No.8 of 2005 has clarified that per diem allowance to employees on tour abroad will not be taxable in the hands of employees even if it is not fully spent