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Kit Allowance and Relocation-Taxable or Not

Tax queries 10616 views 2 replies

I would like to understand following.

  • My organization is giving some amount as Kit Allowance once in 3 years for preparation for overseas travel(it includes bags,clothes etc) is this amount is taxable?
  • I had shifted to pune from Kanpur to join this new organization and for relocation claim i had submitted all reciepts movers and Packer bills etc.Is this amount is taxab
Replies (2)

Kit allowance is paid asadvance and the employee has to submit bills for having spent the amount. If the bills are not produced these are taxable. If bills are produced for partical amount, the balance is taxable.

With respect to relocation also, bills should be produced for transportaton of personal belongings, tickets for travel besides others. If any lump sum is paid, it will attract tax consequent to non-availability of supporting bills for having spent the amount.

Other views are welcome

 

 

1) If travel does not take place in that year and the amount is not spent for the purpose, it is taxable.

2) If it has not arisen due to the contract of employment it is taxable.


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