20 July 2009
Taxable under the head of Salaries on receipt basis.
Ex-gratia is a voluntary payment. It is generally in addition to salary and based on performance.
Bonus literally means 'extra'. In the organisational context, bonus is any payment made beyond the salary and perks and usually linked to productivity-individual or collective. Unlike ex-gratia, bonus is statuatory, since government has fixed the minimum rates for the same. However, both the terms are used inter changeably in the normal course.
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