• Living Allowance Taxation in India for Onsite USA Deputation

Hi Experts,

I went to the USA on Onsite Deputation for Temporary Period via India's Top IT Services Company in Feb-2024 and returned to India Dec-2025. Deputation Letter clearly mentions Annual Salary as Indian Salary + USA Living Allowance.

In USA Payslip, we get Components like Living Allowance , Overseas Performance Incentive, Indian Salary each month. 

Company used to convert Indian Payroll Salary into US Dollar and pay the same amount each month in the US as Indian Salary Component. In India Payslip, it clearly shows Indian Salary converted into US Dollar as a result each month India Net Pay = Rs 0. Also I received Living Allowance each month in US Payslip. US Taxes got deducted each month and Tax Return filing was also done in the US.

As a Resident India, during India's Tax Filing, Global Income gets added. I would like to know if Living Allowance which I received each month in US PaySlip (Paid US Taxes), will this Component be Tax-Exempt in India means it will NOT be added as Global Income in India? I learnt from few of my friends that Living Allowances are Tax Exempt in India but would like a CA to confirm in case they have seen case like this earlier as many people like me travel to USA via India's Top IT Services Company.

I also found on internet earlier judgements like this for Living Allowance - https://indiankanoon.org/doc/138105869/
https://www.casemine.com/judgement/in/5b164b834a93266ec647b39d

If needed, I would like to have a advisory call with a CA who has handled cases like these earlier so that my case can be discussed in details.