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Travel Allowance

Jitendra Mehta (Service) (48 Points)

21 November 2008

Hi, this is Jitendra. Want to have your opinion on taxability of Travel Allowance or Daily Allowance if it is paid as a fixed lumpsum amount to cover food and other misc. expenses. Hotels and transportation are paid separately on actuals. Regards to you all.

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4 Replies

Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
Replied 21 November 2008

daily allowance is exempt upto the limit of actual expenditure for the purpose for which it is given

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Jitendra Mehta (Service) (48 Points)
Replied 21 November 2008

Originally posted by :Rupesh Kalantri
"	daily allowance is exempt upto the limit of actual expenditure for the purpose for which it is given	"

How about if it is not paid based on actual expenses but as a fixed lumpsum amount ?

CA Abhash Mishra (Chartered Accountants) (598 Points)
Replied 21 November 2008

Originally posted by :Jitendra Mehta
"	Hi, this is Jitendra. Want to have your opinion on taxability of Travel Allowance or Daily Allowance if it is paid as a fixed lumpsum amount to cover food and other misc. expenses. Hotels and transportation are paid separately on actuals. Regards to you all.	"

RS. 800 p.m is exempted

Jitendra Mehta (Service) (48 Points)
Replied 21 November 2008

Originally posted by :Jitendra Mehta
"	Think I need to be more specific. My question is that when someone is travelling on a business trip either in India or outside India and he gets a fixed lumpsum amount to cover for his food and other misc. costs (hotels and transportation are reimbursed separately on actuals), whether the same is taxable in the hands of the employee. Hope I am clear now.	"