MudraMantri (Wantapreneur) (491 Points)
25 June 2011Client received Rs 97500 towards reimbusment ( for the purchase of Furniture)., from a leading bank. Apart from this Rs 55500 and Rs 45000 has been recived by him towards Transfer allowance and Halting & training expenses respectively. What are the tax consequenses of the aforementioned receipts.
C.A. abhishek
(ManagementConsultant@KPMG )
(521 Points)
Replied 25 June 2011
the reimbursement from a leading bank will be treated as a monetary perquisite or the expenses reimbursed by employer and hence shouldnt be taxable in the hands of the employee.....other items also such as transfer expenses etc. shall not be taxable to the employee as these are the expenses incured by the employer for the posting/transfer of an ee to another place for the purpose of employment........that is what i think should be
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