Ex-Gratia amount quey

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Dear Experts !

Is ,

a) Ex-Gratia amount paid by employer to an employee is fully taxable ?

b) Ex-Gratia paid by employer to employee on injury during active service or to his family on death during active service is fully exempted 

c) Any amount paid by an employer to an employee for treatment of COVID-19 is fully exempted or their is any limit ?

d) Any amount paid by any person as help to a COVID-19 patient for treatment or to patient's family on his death is fully Exempted upto 10 lacs in the hands of patient & his family ? 

Thanks & Regards

Replies (1)

Gratuity is a benefit given by the employer to employees. A recently approved amendment by the Centre has increased the maximum limit of gratuity. Now it is tax exempt up to Rs 20 lakh from the previous ceiling of Rs 10 lakh, which comes Section 10(10) of the Income Tax Act. The CBDT Notification no. S.O. 1213(E), dated 8 March 2019, clarified that the exemption limit of Rs 20 lakh would be applicable to employees in the event of retirement or death or resignation or disablement on or after 29 March 2018.

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