Dear All Please help me in this regard... Iam an employee of a software company working in Finance Department. Iam facing problem in calculating TDS of the Onsite employee salries. Their salary structure have been divided into two scenarios:
1st scenario: Some employees were paid fixed Indian salary and the same will be credited to their Indian Salary Bank Account and the same will be calculated as per normal TAX slabs. The same employees were also paid PERDIM's( PERDIM's means Daily MONEY given when they go to onsite to meet their onsite expenditure IN DOLLARS SAY USD 40 PER DAY) and will be credited to their FOREX card. I HAVE A BIG DOUBT WHETHER THESE PERDIM ARE TAXABLE IN THEIR SALARY OR NOT. PLEASE CONFIRM ME WHETHER THEY ARE EXEMPTED OR NOT. IF EXEMPTED THE EMPLOYEES HAVE TO PROVIDE BILLS OR NOT.
2ND SCENARIO: Some employees who are onsite will have package in dollars say usd 5000.out of this USD 5000, USD 2000 will be credited into Indian Salary Account (by converting on that prevailing day rate) and USD 3000 will be crdited into Forex card to meet their expenditure at once (it is a lumpsum amount and will not differ irrespective of days the employee stayed onsite). WHETHER USD 300 DEPOSITED IN FOREX CARD IN THIS SCENARIO IS TAXABLE OR NOT. IF EXEMPTED PLEASE PROVIDE HOW IT IS EXEMPTED...
CAclubindia
