Amit (Service) (31 Points)
14 November 2008I would like to understand following.
Raman R
(Partner)
(248 Points)
Replied 14 November 2008
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
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 14 November 2008
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
