I would like to understand following.
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.
CAclubindia
