Relocation expenses

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This query is : Resolved

Naveen Kumar Thota (Querist)

20 August 2013 Hi,

I joined in new company and company offered me relocation from hyderabad to gurgaon as per my eligibility. After my joining I submitted all my actual bills(Air ticket, Packing & Forwarding etc.). And now they paid my reimbursement as per actuals by deducting TDS @ 20.6%. They are telling that it will come under Perquiste. Is Relocation Reimbursement is taxable?

Regards
Naveen

@VaibhavJ

@VaibhavJ (Expert)

20 August 2013 Hi,

It is incorrect, reimbursement of relocation is exempt from Tax.

Thanks//Vaibhav

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

20 August 2013 Reimbursement of exp is not an income as per sec 2(24) of income tax act , since it is not an income only such reimburesment is not taxable at all under income tax act.

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Naveen Kumar Thota

Naveen Kumar Thota (Querist)

20 August 2013 Thankyou so much for your reply. But our finance people are telling that any travel or transfer after joining the company will be exempted of tax and the travel for joining the company is not exempted of tax. Is it right?

Naveen Kumar Thota

Naveen Kumar Thota (Querist)

20 August 2013 Also pls tell me against which section relocation was mentioned as non taxable

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

20 August 2013 you may receive travelling conveyance which will be exempted u/s 10 as per the facts of your case.

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