Ex - gratia
This query is : Resolved
Gnanashekar.R
(Querist)
28 October 2009
Hi,
Can i know aboout ex - gratia payment and what is the tax treatment for the company and employee?
and what is the salary limit for ex-gratia payment?
what is the allowed limit of exgratia to company?
Regards
Gnanashekar.R
Can i know aboout ex - gratia payment and what is the tax treatment for the company and employee?
and what is the salary limit for ex-gratia payment?
what is the allowed limit of exgratia to company?
Regards
Gnanashekar.R
ANIL JANGID
(Expert)
28 October 2009
The term ‘ex-gratia’ should only be used in relation to a payment the employer makes when under no legal or contractual obligation to do so.
CA SANJAY MUKHERJEE
(Expert)
28 October 2009
Ex gratia is taxable in the hands of employee as Salary Income.
It may or may not be allowed as business expenses,depending on the circumstances and necessity of such payment.
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2001%5D117Taxman0396(Gau).htm
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2004%5D138Taxman0143(Bom).htm
It may or may not be allowed as business expenses,depending on the circumstances and necessity of such payment.
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2001%5D117Taxman0396(Gau).htm
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2004%5D138Taxman0143(Bom).htm
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