Ex Gratia - Income Tax

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

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.

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

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..

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

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

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.
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Your information will be precious for me.
Regards,
Ramakrishna

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 [IMG]https://www.citehr.com/misc.php?do=email_dev&email=cmsua3Jpc2huYTIwMDhAZ2 1haWwuY29t[/IMG]
Your information will be precious for me.
Regards,
Ramakrishna

sir,
please clarify the my doubt which head of account is correct for notice period employees, i.e in my co., removed to some employees with notice period of 3 months pay salary
Thanks & regards,
sai j

Hi all,
I need to know that is Bonus & Ex Gratia both used in Salary Breakup at same time ?
and how to explain Employee about Ex Gratia ?
please help me
Thanks & Regard
Vipul Solanki