EX-GRATIA PAYMENT

Querist : Anonymous (Querist) 14 April 2011 This query is : Resolved
For Financial year my only income is ex-gratia payment. As per IT act, this ex-gratia is like salary. Due to this, can we take rebate under the following sections:

1) Section 10, 2) Section 24 3) Section 80-D 4) Section 80C and Section 80CCF.

Can we deduct the above sections from total income, while computing taxable income for income tax.

Is it correct that the Company has deducted 15% from this ex-gratia payment

Kindly inform as soon as possible
Thanks and Regards

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soumitra basu (Expert) 14 April 2011
Unless the Form No. 16A is available it can not opined why the company deducted 15% TDS from the ex-gratia payment.
It was not understood how you can get rebate under section 10 and 24 from this ex-gratia.
If this ex-gratia is from the present or past employer then only it can be termed as Salary other wise not.
However, you are entitle to have the deduction under section 80C and 80D provided you fulfil the conditions specified therein.

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