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Taxability of Ex-Gratia

Naina (CA Student) (477 Points)

23 June 2009

HI everyone

Please tell me about the taxability of Ex-gratia in the hands of receipient?

Thanks

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Renuka Prasad.R (Article Student) (40 Points)
Replied 15 October 2010

Gratuitous payments to widow/legal heirs of employee - 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—Circular : No. 573, dated 21-8-1990.