Company considered my total perdiem as unspent and taxed entire amount

Hi Anil,

Thanks for the useful article. I have in a different situation… I have been to onsite for a period of 53 days and was paid per diem. And my company asked me to declare the unspent perdiem, and I did so. But due to some co-ordination issue, they have not got my unspent perdiem declaration. So, the company considered my total perdiem as unspent and taxed the entire perdiem. After the assignment completion I changed the organization. Now I have to file my tax returns for AY 2015-16 and I would like to declare or adjust my unspent perdiem amounts as to get the exemption on the per diem amount I really spent while onsite. So, in which section of the ITR I can enter this and get the tax exemption.

Thanks in advance for your help…

Thanks,
Venkat. M

Hi Venkata,
I think you should probably consult a chartered accountant to find the relevant section, given your scenario is pretty rare.

Technically, your old company would have added this per diem amount to your taxable income and deducted the TDS. Now, it is difficult for you to claim in your ITR, that, a part of this income was actually NON-taxable, unless your company provides you the relevant and edited FORM 16.

You may have to consult a CA as I am not aware of this situation. Sorry about it.