Boarding & lodging expenses taxable ?

This query is : Resolved

sathish kumkar (Querist)
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26 August 2011 Hi All

We have paid 25,000 as a one time payment to an employee for relocation Expenses how to treat this expenses booked in staff welfare or traveling and conveyance or booked taxable perks in employee hands please advise asp thanks in advance

Regards
G.Sathish Kumar
Exe.Finance & Admin

CA Navin Jain

CA Navin Jain (Expert)
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26 August 2011 Book as travailing expenses and its not taxable in the hand of employee

sathish kumkar

sathish kumkar (Querist)
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26 August 2011 Thank you navin ji

For that amount employee has to submit the bills right ? what will do he fails to produce the bills

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CA Navin Jain

CA Navin Jain (Expert)
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26 August 2011 Reimbursement is made on the basis of actual bill,

If payment is made without of bills then that expenses will be disallowed as per income tax act.