Relocation · perquisite
Relocation and joining assistance
Genuine transfer costs reimbursed against bills are not taxable; lump-sum allowances are.
How the taxable value is determined
Reimbursement of actual shifting, packing and travel costs on transfer is exempt to the extent incurred. A fixed relocation allowance without bills is fully taxable salary.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Movers' invoices, travel tickets, and temporary accommodation bills.
Legal basis: Rule 2BB(1)(a), Income-tax Rules
Frequently asked questions
Is relocation and joining assistance taxable in India?
Genuine transfer costs reimbursed against bills are not taxable; lump-sum allowances are. Reimbursement of actual shifting, packing and travel costs on transfer is exempt to the extent incurred. A fixed relocation allowance without bills is fully taxable salary.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is available. Legal basis: Rule 2BB(1)(a), Income-tax Rules.
What records should I keep for relocation and joining assistance?
Movers' invoices, travel tickets, and temporary accommodation bills.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.