EX-GRATIA PAYMENT
This query is : Resolved
02 August 2010
What is ex-gratia payment? Is such payment is taxable?
02 August 2010
A payment made that is not legally necessary under the terms of a contract. It is usually made because of a moral obligation and no legal liability is admitted by the payer when making an ex gratia payment.
FOR Example, the employee who are not covered under bonus act, i.e employer has no legal liablity to pay bonus to them, but employer want to give employee something as bonus , is called exgratia.
it is fully taxable in hand of receiver.
FOR Example, the employee who are not covered under bonus act, i.e employer has no legal liablity to pay bonus to them, but employer want to give employee something as bonus , is called exgratia.
it is fully taxable in hand of receiver.
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02 August 2010
thanks sir
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