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Tax liability on lpg subsidy

Rajesh (Former Director DRDO) (114 Points)

01 April 2015

Any one clear about the income due to LPG Subsidy? To be counted in income from other source or not? Comment only if you have the rule position.

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7 Replies

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 01 April 2015

Hello, I ll not be 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.

CA HAYEDAR SHAIKH (Practice ) (622 Points)
Replied 01 April 2015

Dear Sir,

As you pay the bill for Gas for using in home and not for the business.

Therefore it is in the nature of Personal expenses and not the business expenes.

Hence, it is not taxable.

Vivek Venkataram (Just cleared CS(441/800) now C.A Final Attempt in May 2015) (772 Points)
Replied 01 April 2015

Not taxable as it is a govt affliated subsidy of personal nature. Commercial lpg is reveived at full rate.

ABHISHEK JINDAL (ARTICLE) (92 Points)
Replied 01 April 2015

Not taxable as it is only a Capital receipt not personal or business expenses.... Hence it is treated as Capital and not taxable.... Because prior to this process when subsidyzed cylinder was available let suppose we only spent 600 now we pay 1000 and subsidy receive hoti h 400 to spent to 600 hi hue... 400 Rs. Phle pay kie fir recieve ho gya to no question of business expenses or personal expenses would be arise.....

suleman khan (article assistant) (21 Points)
Replied 01 April 2015

not taxable becoz of personal nature

Rajesh (Former Director DRDO) (114 Points)
Replied 01 April 2015

No logic please. Answer simple question, the subsidy amount you recieve in your saving bank account linked with aadhar number and LPG consumer number, is your income or not. If it is not an income, WHY? Else if it is your income Why?