Travel and Income Tax
When Foreign travel leads to mandatory filing of Income Tax Return (ITR)
CA Sharath Sudhakaran
If you are travelling abroad, you would need to provide details if you have spent more than Rs 2 lakh on your foreign travel. This (spending Rs 2 lakh or more) makes filing income tax mandatory. If the taxpayer has spent for others, for example, family members or friends too, the foreign travel expenses allowable for tax returns remain the same. The person has to disclose details if more than Rs 2 lakh has been spent. This expenditure can be made in foreign or Indian currency. This rule will also apply to business and personal trips.