Claimed 100% expenses with company trip in Europe but saved 1 Lac in my savings account

(Sanjay) #1

Hi Mr. Anil

i had received per diem when i was on Europe trip…but i claimed 100% expenses with my company but still have around 1 lac in my savings account

will that be taxable in india?

(Anil Gupta) #2

When you file ITR, you should declare this 1 Lac and pay the income tax.
If you have claimed 100% expenses with receipts form your company, the understanding is that you have actually spent that money.

If you do not declare, and the Income tax officer audits your case (and bank accounts), they might ask for this 1 lakh’s origin and explanation.
They may not be satisfied with the bills you actually submitted to your company since they were meant to be spent and not saved.

If no audit happens, then you might just get away with it :slight_smile:
Generally, audit does not happen for small amounts like 1 lac.

But, it is better to be cautious in future.

The best way generally is to keep the amount saved in CASH to avoid any tracking and if you do not want to declare it.