14-12-2007, 01:13 PM
|  | | | Join Date: Feb 2007 Location: Delhi
Posts: 35
| |  ex gratia
Please clarify what is Ex gratia, is this a deductible amount from your salary component, and is there any exemption in income tax on the amount paid as ex gratia?
Its urgent I am confused.
Thanks
Saji |
14-12-2007, 01:28 PM
|  | | | Join Date: Jun 2006 Location: Bangalore
Posts: 20
| | Re: ex gratia
ex gratia is added to yearly salary..
its is taxabkle at 30 %. |
14-12-2007, 01:45 PM
|  | | | Join Date: Feb 2007 Location: Ahmedabad
Posts: 6,448
| | Re: ex gratia
Hi Saji,
Ex-Gratia is an amount which is been added as pre-defined bonus.. its a part of CTC and it is been paid on pro-rata basis at the time of diwali or in case of separation also...
Regards,
Amit Seth. |
14-12-2007, 02:09 PM
| | | | Join Date: Feb 2007 Location: Delhi
Posts: 35
| | Re: ex gratia
Thanks for reply
But my question was
1. Is this a deductible amount from salary and then paid to the employee?
2. The amount received as ex gratia is tax exempted or not?
Saji |
14-12-2007, 02:24 PM
| | | | Join Date: Feb 2007 Location: Ahmedabad
Posts: 6,448
| | Re: ex gratia
Hi Saji,
Its a part of your salary, but is been added as component of CTC.. while preparing salary structure..
Yes it is taxable, already defined by Mr. Ram also.. |
15-12-2007, 08:48 AM
| | | | Join Date: Nov 2007 Location: Chennai
Posts: 51
| | Re: ex gratia
Hi,
Ex gratia literally means any amount paid as a 'favour'.
It may be bonus or for achieving targets or excellence in work.
It becomes part of the gross salary of an employee.
S. Krishnamoorthy |
15-12-2007, 03:38 PM
| | | | Join Date: Jul 2007 Location: Bangalore
Posts: 21
| | Re: ex gratia
Hi
As a practice exgratia is paid once in a year. This is a lumsum amount payable once in a year and this attaracts taxes as applicable.
Srinivas |
23-10-2008, 06:49 PM
| | Guest | | | |
Hi everyone,
I am often get confused with these two terms- Ex-gratia & Bonus. Could anyone tell me the concept and PT is applicable to Bonus or not? i have confused copmany was establishment 8 year back, already completed 5 years , in my company have another 3 units these units was started last year.its applicable for bonus or ex-gratia? could anyone give me a with details as soon as possible.
e-mail id 
Your information will be precious for me.
Regards,
Ramakrishna |
23-10-2008, 06:55 PM
| | Guest | | | |
Hi everyone,
I am often get confused with these two terms- Ex-gratia & Bonus. PT is applicable to Bonus/ex-gratia or not? i have confused copmany was establishment 8 year back, already completed 5 years , in my company have another 3 units these units was started last year.its applicable for bonus or ex-gratia? could anyone give me a with details as soon as possible.
e-mail id
Your information will be precious for me.
Regards,
Ramakrishna |
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