EX GRATIA PAYMENT RECEIVED FROM BANKS

[SOPL SOPL]

Dear Sir/Madam

As per the scheme announced by the GOI,Ministry of Finance vide F.No.2/12/2020-BOA.I dated 23/10/2020 we have received ex-gratia payment from banks against loans which is adjusted by bank towards our principal outstanding.

Is this government benefit received through banks is taxable in our hands?

If yes kindly provide reference of section,notification or circular.

AI Summary

Taxability of ex-gratia government payments through banks questioned as to whether loan principal relief constitutes taxable income. Tax treatment of ex-gratia payments disbursed by the Government through banks and applied against borrowers' outstanding loan principal is queried, asking whether such government-provided relief received via banks constitutes taxable income in the hands of the borrower and requesting relevant statutory or administrative references.