Per Diem Paid

This query is : Resolved

sushil upadhayay (Querist)
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05 March 2009 An individual Deputed to outside India on 7th Dec 07 and will be paid per diem for meeting his boarding lodging and living expenses.

He save a part and come backto india on 19th dec 08.

whether the amount saved will be taxable in india.

Whether employer is required to pay FBT. If yes then what will be the tax treatment in hands of individual

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 March 2009 Pl read http://www.taxworry.com/2006/12/foreign-posted-employees-beware-unspent.html

sushil upadhayay

sushil upadhayay (Querist)
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05 March 2009 what is the final crux in this case

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SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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07 March 2009 It is taxable in the hand of employee, because cash allowance is exempt upto the limit of actually incured. It is also liable to FBT because normally none of the employee is showing the saving in TA/DA and either refunding to employer or paying tax on that amount.

Regards,

Sandeep Aggarwal