Tds on exgratia payment

This query is : Resolved

CS Abhijeet soni Advocate (Querist)
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21 August 2011 Ex-Gratia grant and other facilities to the family of deceased HaryanaGovernment Employees

As per Haryana Govt. C.S’s letter No. 9054-4 G.S. :-70/32230 dated 22.12.1970 and subsequent instructions the bereaved family gets the following grants/concessions; Main features and modifications taken place from time ti time have also been explained in brief.

(1) Ex.Gratia Grant

(a)Rs. 25,000/- (Rupees Twentely Five Thousnad Only) shall be paid to the family of the deseased employee within fifteen days from the date of death to meet the immediate needs on the loss of bread earner.

(G.A.D. Hr. Noti. No. GSR. 19/Const. /Art. 309/2006 dt. 1.8.2006)

now please tell me that this amount is taxable in the hand of wife of emlployee(who died ).

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 August 2011 The amount is not taxable in the hands of widows as Salary or pension income , because she is not in the employment with the Govt.
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CS Abhijeet soni Advocate

CS Abhijeet soni Advocate (Querist)
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22 August 2011 sir its not a clear ans for this you said that its not taxable in the hand of widow as salary or pension income . its very clear that salary or pension taxable when there is relation ship between employer or employee. so plz clarified that is it taxable in hand of widow or tax free .
thanks