Please clarify what Ex gratia is. Is this a deductible amount from your salary component, and is there any exemption in income tax on the amount paid as ex gratia?
It's urgent as I am confused.
Thanks,
Saji
From India, Gurgaon
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4It's urgent as I am confused.
Thanks,
Saji
From India, Gurgaon
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Hi Saji,
Ex-gratia is an amount that is added as a pre-defined bonus. It is a part of CTC and is paid on a pro-rata basis at the time of Diwali or in case of separation as well.
Regards,
Amit Seth.
From India, Ahmadabad
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Ex-gratia is an amount that is added as a pre-defined bonus. It is a part of CTC and is paid on a pro-rata basis at the time of Diwali or in case of separation as well.
Regards,
Amit Seth.
From India, Ahmadabad
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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
From India, Gurgaon
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From India, Gurgaon
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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..
From India, Ahmadabad
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From India, Ahmadabad
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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
From United States, Roslindale
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From United States, Roslindale
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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
From Germany
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From Germany
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