In government, we don't get 'per diem' like private companies—we get a fixed daily allowance, and it's fully exempt from tax if you're on tour. The rules are clear in the government travel rules, not the Income Tax Act. I know because my own travel claims from my school trips are processed under these same rules, and they never show up in my Form-16. Baaki, log kehnde ne ki market rates dekho, par sarkari daftar mein to sab rule-book se chalta hai.
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