Relocation Allowance

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vipin (Querist)
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19 June 2010 i received Rs. 137000 from Goldman Sachs as relocation allowance for shifting to Bangalore from Pune... i was working in john deere in pune... in my case will the whole amount of relocation allowance get taxed or an i claim benefit to the extent expenditure incurred.. please advice asap....thank you

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 June 2010 Relocation allowance are exempted up to the actual expenses incurred balance if any taxable

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vipin

vipin (Querist)
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19 June 2010 can you provide me the relevant circular....

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 June 2010 Under Income tax two types of allowances can be segregated

1. Allowances not depend on the expenses which the exemption fixed by the Income tax itself like Transport allowance,Child education allowance those are amount fixed by the Govt

Some of the allowances are based on the expenses incurred please refer u/s.10(14)

Some links also I provided here

https://www.indiataxes.com/Information/incometax/contents/salaries/allowances/allow_dep_exp.htm

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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27 June 2010 agreed

vipin

vipin (Querist)
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14 September 2010 thank you very much.. it proved beneficial...
take care...

P.S : can you guide me on service tax related issues...i have a real estate business and develop houses of the range lower than 20 lakh... is service tax liable on me... am i suppose to pay VAT also....

Please reply asap

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 September 2010 this link will help you

https://www.etaxindia.org/2010/08/sale-of-under-construction-houses-to-attract-ervice-tax-from-july-1.html

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