The allowance being given to you is not being given by the government,so the advantage of Sec 10 (7) cannot be taken.It is being given by the organisation you are working for.Sec 10(14) also exempts certain allowances to the extent they are used for the specific purposes for which they are given like conveyance allowance,daily allowance on tour,uniform allownace,professional updation allowance,etc.he list of such allowances are given in rule 2BB.But this allownace is not mentioned there.So it is taxable.More so because you have gone there for only three months so you are Indian resident.If this allowance is also being taxed in the country where you are earning it,you can take advantage of the double taxation avoidance agreement if any exists between India and that country,or if not,you can get relief under Sec 91,which provides for the unilateral relief for doubly taxed incomes where no DTAA exists.The relief will be the tax calculated at this income at the Indian rate or the rate in the country where it is earned,whichever is lower.More comments on such typical questions are welcome.
