House related · allowance
Outstation and accommodation allowance
Allowances covering stays away from your base are exempt to the extent actually spent on duty.
How the taxable value is determined
Where the allowance meets ordinary daily charges incurred on account of absence from the normal place of duty, it is exempt to the extent incurred. Fixed amounts beyond actual expenditure are taxable.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Tour records and accommodation bills.
Legal basis: Rule 2BB(1)(b), Income-tax Rules
Frequently asked questions
Is outstation and accommodation allowance taxable in India?
Allowances covering stays away from your base are exempt to the extent actually spent on duty. Where the allowance meets ordinary daily charges incurred on account of absence from the normal place of duty, it is exempt to the extent incurred. Fixed amounts beyond actual expenditure are taxable.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is available. Legal basis: Rule 2BB(1)(b), Income-tax Rules.
What records should I keep for outstation and accommodation allowance?
Tour records and accommodation bills.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.