Indian Tax on Per Diem Money received on L1 Visa after deducting US tax

India Income Tax
1

Hi Anil,

Can you tell me the tax implications in the below scenario :-
I am on an L1 Visa for 3 years.
I receive 65 USD as Daily site allowance + My indian salary (that goes into my Indian salary account).

Now, Our company is a bit “cruel” and taxes all our “Site Allowances”… so whatever I earn is already been taxed in my TDS every month.

So, I keep withdrawing the relevant amount from my travel card every month and keep it aside (for example a period of 30days, I use about 500 USD for food, etc. and keep the remaining 1400 USD as cash).

I presume, this amount that I am taking out of my Travel card can be taken back, converted into INR and deposited into my savings bank.

Please note that I have already paid tax for this money.

Also please note that my project is going to last for almost 2 years here… (I have completed 4 months already here)

2

You don’t need to pay taxes again in India if it is already taxed once in US.
You should get a tax deduction certificate for the amount as proof.

A better idea would be to transfer the money from your current foreign country to India via banking channel.

Depositing high amount of cash would be difficult to explain and raises suspicion of transferring un-taxed money in the eyes of income tax officer.