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What is relocation bonus
I am appointed to a IT company and they are offering me 50,000 RS as Relocation Bonus?
I didn't understand the term bonus? Will they give me lump sum money Rs 50,000 as relocation charges or I have to submit the bills of expenses? Is this amount taxable?How much tax? |
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It is often easiest for a company to just pay the employee a bonus rather than pay for the actual relocation. This amount will be added as income and you will have the usual payroll deductions and tax implications as you would any other bonus income you receive from the company. The actual amount is determined by many factors, such as your country and state, your tax deductions, etc.
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It is often easiest for a company to just pay the employee a bonus rather than pay for the actual relocation. This amount will be added as income and you will have the usual payroll deductions and tax implications as you would any other bonus income you receive from the company. The actual amount is determined by many factors, such as your country and state, your tax deductions, etc.
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The relocation bonus is a bonus to pay for your relocation. Yes, you will be paying the same taxes on it that you would pay if you received a payroll bonus from your company. Since it is a bonus you will not need to submit receipts. You will need to keep those receipts to offset them against your taxes when you file taxes. You can take off the expenses of moving to the new job. You need also to know that many companies will require that you work a specific amount of time 1 year or more usually and if you do not you may be required to repay the bonus to the company. Shirley |
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