Taxation of global relocation allowance
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 June 2017
Hello,
I relocated to the US from India in Dec 2016 and my employer paid relocation allowance for the same. To offset the tax impact in US, they grossed up the relocation amount. As a part of relocation assistance, they also assigned a tax consultant.
The tax consultant failed to explicitly inform about the fact that relocation money would be counted as salary and would be taxable in India. So now it has come to me as a surprise that I'm supposed to pay a hefty tax on the grossed up relocation amount, which could've been very easily avoided either by postponing the move by 15 days OR postponing the deposit of relocation funds by same duration.
On top of that, they failed to anticipate that the situation would warrant paying advance tax and now I'm supposed to pay 10% penalty + interest under section 234a/b/c.
I'm wondering what are my options here. Any way to mitigate this tax impact? Should I seek compensation from the tax consultant?
I relocated to the US from India in Dec 2016 and my employer paid relocation allowance for the same. To offset the tax impact in US, they grossed up the relocation amount. As a part of relocation assistance, they also assigned a tax consultant.
The tax consultant failed to explicitly inform about the fact that relocation money would be counted as salary and would be taxable in India. So now it has come to me as a surprise that I'm supposed to pay a hefty tax on the grossed up relocation amount, which could've been very easily avoided either by postponing the move by 15 days OR postponing the deposit of relocation funds by same duration.
On top of that, they failed to anticipate that the situation would warrant paying advance tax and now I'm supposed to pay 10% penalty + interest under section 234a/b/c.
I'm wondering what are my options here. Any way to mitigate this tax impact? Should I seek compensation from the tax consultant?
29 June 2017
you can try for section 264 for dropping penalty
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Capital gain on sale and purchase of plot
- Bank details not Visible on Traces Portal
- Journal entry of busniess expenses
- NRI starting business in India
- Form 140 tds
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- TDS Deducted AY-2013-14 Not Reflected in 26as
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
