Hi, Is tax exemption on allowance for foreign service applicable only in case of government employees ? Off late lot of private companies are sending people on short term assignments, what about the allowances which these people get,do they need to pay tax on the same ? Kindly confirm.
RE:Allowance for foreign service
by Kiran Salaunkey on Apr 29, 2007 02:57 AM Permalink
As far as I understand it, if you are deputed to a foreign country the income you earn in that country will be governed by the laws of that country and hence the tax for the same will be deducted there, and NOT in India, but if you are getting allowances etc, in India for leaving offshore, then you will be taxed for the same in India.
