When an employee goes out of the office for work, our company gives an allowance based on the grade, ranging from INR 400 per day to the worker to INR 2000 per day to the manager. these allowances are only for food expenses during the day. The employee does not submit any invoices /bills against these allowances to the company. There is no proof of actual expense against these allowances available with the company
Will these allowances be considered tax-free for the employee, or is the company required to deduct taxes on them?
From India, Pune
Will these allowances be considered tax-free for the employee, or is the company required to deduct taxes on them?
From India, Pune
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Table showing tax treatment of provident funds.doc