Taxability of LTA & HRA

[Siraj Shaikh]

Dear Colleagues,

 

A employee has been deputed to a foreign country for more than a year, but he is paid his salary in India. The Salary Package includes LTA and HRA.

Can someone throw some light on the chargeability of LTA & HRA in the hands of this employee ?

[SATHEESH NAIR]

YES THE TDS HE HAS TO PAY THE INCOME TAX.

[CAGOPALJI AGRAWAL]

Per query, the whole income is taxable in India as per normal tax provisions.

AI Summary

Taxability of foreign-posted salary: LTA and HRA paid in India remain taxable and liable for tax. Where salary, including Leave Travel Allowance and House Rent Allowance, is paid in India while an employee is deputed abroad for over a year, those allowances are chargeable to tax in India under normal income tax rules and the employee must comply with withholding (TDS) and filing obligations on the full salary income.