Taxability of bonus after covid death

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This discussion addresses whether a bonus due to be paid in December 2021 to an employee who passed away from COVID-19 in April 2021 is tax-exempt. While there's a general tax exemption of up to £3 lakhs and a specific government exemption of up to £10 lakhs for ex-gratia payments related to COVID-19 deaths, it's clarified that a standard bonus payment typically does not fall under these exemptions.

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(Querist)
17 November 2021 Dear experts,

My father retired in February 2021 but unfortunately he passed away due to covid in April 2021. He is due to receive bonus in December 2021. My query is whether this bonus from employer is tax exempt as ex gratia recieved from employer on covid death? if it is tax exempt upto what extent?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 November 2021 Basic tax exemption available upto 3 lacs.
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Ankita

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Ankita (Querist)
17 November 2021 Government benefit of tax exemption for ex gratia payment after covid death upto 10 lakhs will not be applicable?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 November 2021 Bonus payment will not fall under the above exemption.
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