Income Tax on EX-GRATIA paid to Bank Pensioners.

[Sukumaran Ramaraj]

.             JUST A REMINDER 

Generally all the payments made by the employer to the employees are subject to taxation as these payments come under the employment contract.

What bout the ex-gratia payment made by the banks to the pensioners, which is without any legal obligation?? 

Is that too taxable.??

Sukumaran R

BOI Pensioner. 

[Venkataramani Jr]

yes. EX-GRATIA  is part of pension it is taxable.

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WITH REGARDS

J R V RAMANI

[Vvns Varaprasadrao]

Exgratia amount is also taxable.

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[Seshagirirao Garimella]

It is taxable. During emergency slowly bonus is removed and in its place exgratia was introduced and it was taxable at that time. It is only accounting adjustments at the apex level .

Sent from my iPhone

On Nov 22, 2024, at 2:03 AM, Sukumaran Ramaraj <sukuma...@gmail.com> wrote:



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[Krishnaiah Bondalapati]

yes.

It is being paid as a part of pension only.

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[Sridhar Mandyam]

Just calling a payment ex-gratia is not ex-gratia in its real sense.
Ex-gratia is amount paid to the sufferer say earth quake, floods riots
accidents etc., Usually it will be onetime payment, it may be from the
employer also. It is to mitigate loss suffered. Such payments are
exempted is my view

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[krishnan]

Ex gratia being paid regularly ie monthly with pension as such such regular payments are treated as income and become taxable

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[P. S. SATYANARAYANA]

There is no ground to conclude that only payments made under a legal obligation are taxable in the hands of the recipient.

Let us remember that even gifts are taxable, of course with some exemptions.

That too, ex-gratia is not a gift to claim even those exemptions which are available for gifts.

So, clearly ex-gratia is taxable.

The question of employer-employee relationship becomes relevant only to classify the income under the head 'Income from Salary'.

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[Gopalakrishnan Ramachandran]

Govt is not foolish enough to forego the income derived by taxing ex-gratia. Any amount received as salary(ex-gratia is a prelude to updation of pension) is taxable under law and ex-gratia is not doubt taxable.

G Ramachandran 

CB-SVRS.

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[Narayanan Venkateshwaran]

Was not the bonus if any received during service called ex-gratia and charged to income tax?

There is no room for doubts 

CVNarayanan

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[kumar n]

Interns of IT pay includes all allowances+Basic pay. Pay is what mentioned in the pay slip in our case it is pension slip.     N Kumar, Chennai

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[Chinnasamy Rajagopalan]

Dear sir,

                 Employers will always take the safe route and if any item is not taxable according to u they will give form 16 and u have to file your return and get a refund if u satisfy the ITO

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