Saswatabanerjee
Partner - Risk Management
Pon1965
Construction
+4 Others

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Hi, I would like to know, apart from my TDS deduction from my basic salary, the allowance paid to me on any business tour abroad or domestic will also be applicable for TDS deduction?
From India, Kolkata
Certain allowances are exempted subject to limit. Reimbursements are not taxable.
From India, Lucknow
There is a provision in the income tax act that provides that any special allowance that is provided specifically to defer additional expenses incurred by the employee on account of his job or place of work will be exempt.
However, an allowance given for a foreign trip, as distinct from reimbursement of expenses may not be covered under this clause. You need to speak to the accounts department of your company and to your CA if necessary to get a clarification. The exemption or taxability would depend on various factors and method of computation of the allowance

From India, Mumbai
How do we decrease office clerk basic salary(will increase their subsidies) without infringe the labor law??
From Bangladesh, Dhaka
Allowance are treated as income. Reimbursement are treated as income. Hence allowance paid can be added in your total income and hence liable for TDS.
From India
Dear Manasksingh, I think you mean to say reimbursement are NOT treated as income, (provided there is a proof of expenditure having been incurred) A S Bhat
From India, Pune
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