Per diem allowance

This query is : Resolved

ranjan (Querist)
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19 July 2013 My brother went to US for 5 months on training. He & his spouse both received per diem allowance. He has got no expense bill to show to the company about the expenses he has incurred. Now I have already filed IT Return for AY 2013-14 and didn't shows this allowance in IT Return.
Whether per diem allowance received to wife will be fully taxable ?

Please help me to how should I avoid/minimise tax on this allowance

He is Resident & ordinary resident.

Rajat Poddar

Rajat Poddar (Expert)
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19 July 2013 as per income tax act ...the exemption would be available to the extent of actual expenditure incurred. Per Diem allowance should not be liable to tax in India to the extent actual bills are submitted by the employees. However, any allowance that is paid in excess of actual bills submitted would be considered as taxable in India. .. since u don't have expense bill proving to income tax authorities wont b easy..as its taxable to resident individuals...