Taxability of Foreign Allowance paid in India

[arun das]

Kindly guide on the following issue

1. An official of a PSU was deputed to Japan for a period of 18 months, who is treated equivalent to 'Minister'

2. He was entitled for allowance at par with that of 'Minister'

3. Japanese authority had paid him certain allowance in their currency (which is lower than the amount he was actually eligible for). The amount was received in Japan only.

4. Now, the difference amount is being paid by the PSU to him, in India( Eligible amount , less already paid by Japanese authority ).This is for the period of service at Japan.

Query

Whether the differential amount beng paid now to the official,by the PSU -in India, for the service provided at Japan is taxable or not?

AI Summary

Clarification sought on income tax applicability for differential allowance paid in India for service in Japan under Section 17. An individual from a public sector undertaking (PSU) was assigned to Japan for 18 months and received an allowance equivalent to a minister's. The Japanese authority paid part of this allowance in their currency, which was less than the entitled amount. The PSU is now paying the difference in India for the service period in Japan. The query seeks clarity on whether this differential amount paid in India is subject to income tax. A respondent initially questioned if the query pertained to GST but was clarified that it concerns income tax applicability.