Income Tax on Relocation expenses reimbursement

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I would like to know, are Relocation expenses taxable?? I have relocated from Bangalore to Hyderabad, from a company to Different company. The company have provided the reimbursement for household package & transfer and persons travel, on producing the bills. But this is taxed and paid, and my employer says they are taxable as FBT has been removed. Please let me know whether they are taxable.

1 Answers

Company can show it in company expense with original bills and hence no tax need to be deducted on reimbursement to employee.

If company has deducted taxes that means company has accounted this amount as part of your income and not reimbursement of actual bills.

However there is no as such standard rule for this and it all depends on your employer handling of case.

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