LatestIncome Tax 29 October 2026
UK‑Based Indian Employees May Get Tax‑Free Per Diem in India
Indian companies that provide per‑diem allowances to employees working in the United Kingdom may be able to treat those payments as tax‑free in India, provided the allowance is documented, linked to actual overseas travel, and correctly reported in the employee’s Indian tax return, eliminating the need for double‑taxation relief under current regulations.
The Economic Times reports that Indian firms paying per‑diem to staff stationed in the UK can claim the allowance as tax‑free in India if specific criteria are satisfied.
- The per‑diem must cover actual travel and stay abroad.
- It should be included in the employee’s salary structure and properly documented.
- No double‑taxation treaty benefit is required, but the amount must be declared accurately in the Indian tax return.
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