I joined in new company and company offered me relocation from hyderabad to gurgaon as per my eligibility. After my joining I submitted all my actual bills(Air ticket, Packing & Forwarding etc.). And now they paid my reimbursement as per actuals by deducting TDS @ 20.6%. They are telling that it will come under Perquiste. Is Relocation Reimbursement is taxable?
20 August 2013
Reimbursement of exp is not an income as per sec 2(24) of income tax act , since it is not an income only such reimburesment is not taxable at all under income tax act.
20 August 2013
Thankyou so much for your reply. But our finance people are telling that any travel or transfer after joining the company will be exempted of tax and the travel for joining the company is not exempted of tax. Is it right?