At first I convey my gratitude for replying my query. Sir, I am in a large private co. my boss has given me an expenses for family shifting to our project location due to transfer. The cost is coming Rs.68,000/ against air fare. My query is whether can I pay the reimbursement in cash or if in cheque, shall I deduct TDS agst that expenditure.
TDS is not to be deducted on expenses incurred relating to transfer of employment location.
Further...since the payment is more that 20000/-, it must be paid through crossed cheque or DD, to avoid any dis-allowance of expenses under Income tax.
CAclubindia
