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SleepyPenguin
SleepyPenguin
Stealth

Tax on Joining Bonus

I recently received a 1L joining bonus for relocation. May I know if this is a taxable income?

My company didn't peform a TDS and provided me the entire 1L. Do I have to pay tax while filing returns?

20mo ago
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FluffyNarwhal
FluffyNarwhal
Amazon20mo

Section 10(4) 2BB for availing relocation allowance exemption

I claimed it in full for my relocation allowance of 1.5L but it needs to be specified as a relocation allowance

SleepyPenguin
SleepyPenguin
Stealth20mo

Noted. Thanks much!

FluffyNarwhal
FluffyNarwhal
Amazon20mo

Is this a joining bonus or a relocation bonus?

Joining bonus is taxable Relocation bonus is tax exempt

SleepyPenguin
SleepyPenguin
Stealth20mo

It is specified as relocation bonus in my offer letter. Should I refer the payslip?

FluffyNarwhal
FluffyNarwhal
Amazon20mo

Refer the payslip for good measure, but yes, you should be able to get an exemption on the amount

Pls note the law says it's exempt upto receipts produced for expenses (Hotel for 15 days max, packers movers charges, airline trip) but I've had no hassles in claiming the full amount as exempt

SwirlyPancake
SwirlyPancake
Jio20mo

Bonus and VP doesn't have TDS deducted but you'll be taxed while filing.

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