Last modified / updated Feb. 04, 2016
Income Tax Act, 1961 : Income Exempted and Chargeable under the Head "Salaries"
17. Transfer Grant Allowance
In this connection it is to be noted that as per sec.10(14) read with rule 2BB any allowance
granted to meet the cost of travel on tour or on transfer includes any sum paid in connection
with transfer, packing and transportation of personal effects on such transfer shall be exempt.
Also any allowance, whether, granted for the period of journey in connection with transfer, to
meet the ordinary daily charges incurred by an employee on account of absence from his
normal place of duty shall be exempt.
18. Medical Reimbursement by the employer
Medical Reimbursement by the employer exceeding Rs. 15,000/- p.a. u/s 17(2) is to be
taken as perquisite.
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