Ex-gratia payouts and tax basics explained

I was laid off from a multinational corporation, but the company recorded my exit as a resignation. They paid me ₹35 lakh as ex-gratia compensation.

- Mahesh Nayak

However, the entire amount was taxed according to my applicable income tax slab rates. I want to understand if ex-gratia payments are taxable and, if so, why that is the case. Also, can I claim a refund or any tax rebate on the amount deducted? Does the fact that my exit was treated as a resignation instead of a layoff affect the tax treatment of this payment?

—Name withheld on request