Ranjan
CA Final(New Course)
[ Scorecard : 57]
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Posted On 25 January 2010 at 13:26
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Whether expenses paid by employer to employee for relocation of his/her family will be considered as a perquisite

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Amir
Learner
[ Scorecard : 2660]
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Posted On 25 January 2010 at 15:01
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Dear Ranjan,
As per Rule 2BB read with Sec 10(14), any expenses incuured on tour or travel or TRANSFER shall be exempt..
Exempt will be lower of the following -
1) Amount received as Reallocation expenses
2) Amount Incurred by the employee
Therefore if employer has reimbursed actual expenses than nothing shall be taxable..
However If Employee has not incurred all the expenses then excess amount shall be taxable
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Shudhanshu
Final-Student-Nov 2011
[ Scorecard : 759]
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Posted On 25 January 2010 at 15:11
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| Originally posted by : Amir |
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Dear Ranjan,
As per Rule 2BB read with Sec 10(14), any expenses incuured on tour or travel or TRANSFER shall be exempt..
Exempt will be lower of the following -
1) Amount received as Reallocation expenses
2) Amount Incurred by the employee
Therefore if employer has reimbursed actual expenses than nothing shall be taxable..
However If Employee has not incurred all the expenses then excess amount shall be taxable
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im agree with amir and good reply.
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Ranjan
CA Final(New Course)
[ Scorecard : 57]
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Posted On 25 January 2010 at 15:34
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But, if employee is placed in delhi initially & afterwards employee have been given some amount as relocation reimbursement to shift his family from russia to delhi, then, it will not be considered as transfer & therefore these provisions do not apply
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Amir
Learner
[ Scorecard : 2660]
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Posted On 25 January 2010 at 15:38
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Dear Ranjan,
It will still be allowed since the term is wide which includes "TOUR or TRAVEL or TRANSFER"
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Sunil
Trader
[ Scorecard : 1663]
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Posted On 26 January 2010 at 16:29
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It does not matter if the employee himself shifted first and the family comes later. There is no condition laid down that the relocation has to take place all at a time. The entire process of shifting from the date the employee shifts till his last dependent family member shifts is 'relocation' and if they travelled afterwards the entire process is taken as a whole.
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