When I joined my present company in June 2009, I was paid a shifting charge of Rs. 30,000 and temporary accommodation (hotel) charge of Rs. 21,000. However the company has added those to expenses to my income and already deducted taxes. If I want to reduce these charges from my income (as these were expenses required to perform my duty) in my return and claim back the taxes, what documents I need to produce? I have the original bills for expenditure on hotel and transport bill for shifting. What documents/certificates I would require from my employer to claim back that tax in the return? My employer is a MNC bank. Alankar Chandra , Banglore
I do not think that shifting charges and the temporary accommodation in hotel can be taken as expense required to perform the duty.
Of course Rule 3(1) provides that if the employer provides hotel accommodation in a hotel for 15 days in case of transfer of an employee from one place to another, same may not be considered perquisites . In your case , the transfer is not involved. However, you can consider the reimbursement of hotel expense of Rs 21,000 as HRA and claim exemption for house rent. Shifting charge is certainly taxable in your hand without any relief.
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