As per Section 10(5) read with Rule 2B of the IT Act, it permits exemption only if travel is within India. However, sometimes people plan their foreign travel having two Indian cities en-route their foreign destination and claim travel to the Indian destination. This practice has always been a grey area difficult to take a call.. However, in a recent judgment by the Chandigarh Tribunal, it has been clarified that the concession is available only for domestic travel and cannot be clubbed with an overseas journey. In this case, the individual had travelled overseas and the tribunal denied the tax benefit on the total cost/partial Indian travel cost. How ever, let us rely on section 10(5) of the act read with Rule 2B and decide accordingly.

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