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Is gas subsidy considered as income.

gunturboy26 (Self Employed) (217 Points)

19 July 2016

Is Gas subsidy considered as income? Should we add the Gas subsidy to our income while calculating total income or exclude it?

Thank you.

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27 Replies

Dinesh Mertiya (PROFESSIONAL) (761 Points)
Replied 19 July 2016

Yes, Should not be included in total income

1 Like

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : Dinesh Mertiya
	Yes, Should be included in total income

Thank you for the reply Dinesh, but subsidy is given by government to everybody, it is not earned by the individual.

Arupjyoti das (0) (33 Points)
Replied 19 July 2016

yes,it will be come under income from other sources

1 Like

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : Arupjyoti das
	yes,it will be come under income from other sources

Thank you for the information Arupjyoti.

Rahul (CA) (28 Points)
Replied 19 July 2016

No it is not an income as per circular issued by Govt.

1 Like

vishnu bhardwaj (Tax Advocate) (212 Points)
Replied 19 July 2016

an amendment in Finance Bill, 2015 that expanded the definition of taxable income to include subsidies, grants, cash incentive and duty drawback.

1 Like

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : Rahul
	No it is not an income as per circular issued by Govt.

It is not?

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : vishnu bhardwaj
	an amendment in Finance Bill, 2015 that expanded the definition of taxable income to include subsidies, grants, cash incentive and duty drawback.

So it is considered as income.

Rahul (CA) (28 Points)
Replied 19 July 2016

It has been exluded by the circular issued by Govt of India.

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

I got both yes and no answers here.

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : Rahul
	It has been exluded by the circular issued by Govt of India.

So it is excluded, many are saying it should be added.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 19 July 2016

Hello, It is not taxable.

We don’t claim gas cylinder bill as business expenses. So subsidy received for that is not taxable. It is personal expenses. For business activity commercial gas cylinder is available on which subsidy is not available. Question of taxation doesn't arise.

1 Like

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 19 July 2016

Yes . it is specifically excluded from definition of subsidy defined under Finance Act,2015.

gunturboy26 (Self Employed) (217 Points)
Replied 19 July 2016

Originally posted by : Vishal Goel
	Hello, It is not taxable. We don’t claim gas cylinder bill as business expenses. So subsidy received for that is not taxable. It is personal expenses. For business activity commercial gas cylinder is available on which subsidy is not available. Question of taxation doesn't arise.

So no need to add it to total income, Thank you for the information Vishal.