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Exgratia compensation

siddhpura hiren (Accountant) (59 Points)

30 December 2012

Can Exgratia Compensation Expenses deducted as per IT Act ?

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5 Replies

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 30 December 2012

hi can you eloberate ur question.

Thanks!!

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(Guest)

exgratia compensation received on death in lumpsum is fully exempt as per the circular issued by CBDT

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 30 December 2012

Hi,

In Circular No. 573, dated 21-8-1990, it was stated that a lump sum payment made gratuitously or by way of compensation or otherwise to the widow or other legal heirs of an employee, who dies while still in active service, is not taxable as income under the Income Tax Act, 1961.

Thanks!!

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 30 December 2012

Originally posted by : @ VaibhavJ
	Hi, In Circular No. 573, dated 21-8-1990, it was stated that a lump sum payment made gratuitously or by way of compensation or otherwise to the widow or other legal heirs of an employee, who dies while still in active service, is not taxable as income under the Income Tax Act, 1961. Thanks!!