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 ?

AI Summary

Foreign-Deputed Employee's Salary, Including LTA and HRA, Taxable in India Under Normal Tax Provisions An employee deputed to a foreign country for over a year receives their salary in India, which includes Leave Travel Allowance (LTA) and House Rent Allowance (HRA). A query was raised regarding the taxability of these components. The responses clarified that the entire income, including LTA and HRA, is taxable in India under the normal tax provisions, and the employee is required to pay the applicable income tax.