Tax on saving from onsite allowance

POSTED BY Amit Sharma ON June 28, 2013 7:18 am COMMENTS (3)

Hi,

Well, I have 2 questions related to income tax.

FIRST QUESTION :

     I had some income from FDs on which bank deducted 10% tax.

    Just recently I came to know that I have to pay tax on that interest as well as per my tax slab along with my salaried income. Hope this understanding is correct.

    Now since that financial already passed so how can I pay extra tax ?  Do I have to pay any penalty along with additional tax ?

   If Yes, how much penalty and where I can check these ?

 

SECOND QUESTION :

   I am Indian citizen on pay roll in India. I get my salary in India and pay tax on that.

   Since last 3-4 months I am out of India for official purpose and here I am getting the allowance for hotel/food/transport in dollars.

   I save some dollars from these which I can exchange in India with INR and cash deposit in my Bank A/C.

   Is this taxable income? If yes, how much tax?

   If No, what is the limit ?

   Also how can I show source of this income as if in future some query  me that from where I got this money and why didn’t I pay tax ?

   So that time what I can show them as proof that this income is from  onsite allowance and not liable for tax.

 

Thank you so much for your time and help.

Please answer all sub-questions.

 

Thanks

Amit Sharma

amsh259@gmail.com

 

 

3 replies on this article “Tax on saving from onsite allowance”

  1. Dear Amit, please check the oficial site of Income Tax for the same.

    http://www.incometaxindia.gov.in

    Thanks

    Ashal

  2. Dear Amit, please file your ITR online & the sheet ‘ll calculate your Tax liability for Fd Interest. this additional tax along with any ppenalty interest you can pay online itself from your netbanking enabled bank account.

    The savings made by you from Onsite allowances are tax free with out any limit.

    thanks

    Ashal

    1. Amit Sharma says:

      Thanks Ashal for reply !!!

      One question on saving from allowance that what document or paper I should gather in order to support my saving comes from onsite allowance ??

      And is there any official web site which state this rules so I can keep that with my self as IT dept can esquire even some years after for same?

      Thanks Again
      Amit Sharma

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