Dear Ranjan,
As per Rule 2BB read with Sec 10(14), any expenses incuured on tour or travel or TRANSFER shall be exempt..
Exempt will be lower of the following -
1) Amount received as Reallocation expenses
2) Amount Incurred by the employee
Therefore if employer has reimbursed actual expenses than nothing shall be taxable..
However If Employee has not incurred all the expenses then excess amount shall be taxable
But, if employee is placed in delhi initially & afterwards employee have been given some amount as relocation reimbursement to shift his family from russia to delhi, then, it will not be considered as transfer & therefore these provisions do not apply
It does not matter if the employee himself shifted first and the family comes later. There is no condition laid down that the relocation has to take place all at a time. The entire process of shifting from the date the employee shifts till his last dependent family member shifts is 'relocation' and if they travelled afterwards the entire process is taken as a whole.