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
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From India, Kolkata
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Certain allowances are exempted subject to limit. Reimbursements are not taxable.
From India, Lucknow
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616From India, Lucknow
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Tax Exemption on Special Allowances
There is a provision in the Income Tax Act that states any special allowance provided specifically to cover additional expenses incurred by the employee due to their 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 consult your Chartered Accountant (CA) if necessary to get clarification. The exemption or taxability would depend on various factors and the method of computation of the allowance.
From India, Mumbai
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There is a provision in the Income Tax Act that states any special allowance provided specifically to cover additional expenses incurred by the employee due to their 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 consult your Chartered Accountant (CA) if necessary to get clarification. The exemption or taxability would depend on various factors and the method of computation of the allowance.
From India, Mumbai
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf