What is travelling allowance? #
Travelling allowance is paid by the employer to meet the cost of travel on an employee’s tour or transfer. Travelling allowance includes the cost of airfare, train fare and any other transportation costs.
Any such allowance is paid by the employer to meet the ordinary daily expenses incurred by an employee while the absence from the usual place of duty. The travelling allowance should be for the travel or for the journey in connection with a transfer.
The allowance includes expenses incurred for food and other daily costs while travelling. The allowance includes travelling expenses incurred by an employee when performing official duties.
An employee can furnish proof or invoices of relocation expenses to the employer and claim tax-free reimbursement.