Taxbility of Bonus\Ex gratia under salaries
This query is : Resolved
Murali dhar
(Querist)
20 July 2009
Dear Sir,
our company gives ex gratia to all employees due to completion of Road project. in this regard whether it is taxable uder head salaries?
2. What is difference of Bonus, ex-gratia under income tax Act?
Kindy clarify in this matter.
Best regards
N,Murli dhar
our company gives ex gratia to all employees due to completion of Road project. in this regard whether it is taxable uder head salaries?
2. What is difference of Bonus, ex-gratia under income tax Act?
Kindy clarify in this matter.
Best regards
N,Murli dhar
20 July 2009
Taxable under the head of Salaries on receipt basis.
Ex-gratia is a voluntary payment. It is generally in addition to salary and based on performance.
Bonus literally means 'extra'. In the organisational context, bonus is any payment made beyond the salary and perks and usually linked to productivity-individual or collective. Unlike ex-gratia, bonus is statuatory, since government has fixed the minimum rates for the same.
However, both the terms are used inter changeably in the normal course.
Ex-gratia is a voluntary payment. It is generally in addition to salary and based on performance.
Bonus literally means 'extra'. In the organisational context, bonus is any payment made beyond the salary and perks and usually linked to productivity-individual or collective. Unlike ex-gratia, bonus is statuatory, since government has fixed the minimum rates for the same.
However, both the terms are used inter changeably in the normal course.
Murali dhar
(Querist)
20 July 2009
Tahnk you sir
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