Capital or Revenue receipts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 May 2010
Dear Freinds
Interest and Wage Employment Susidy received from Govt. is a CAPITAL Receipts or REVENUE Receipts. The above subsidy amount is based on Interest and Wages paid during the year.
My question is whether the above susidy is taxable in hands of assessee. Pls also give any judgement or case law on the above
Thanks
Interest and Wage Employment Susidy received from Govt. is a CAPITAL Receipts or REVENUE Receipts. The above subsidy amount is based on Interest and Wages paid during the year.
My question is whether the above susidy is taxable in hands of assessee. Pls also give any judgement or case law on the above
Thanks
29 May 2010
Since you are getting reimbursement of wages and interest which is an expenditure the subsidy should be treated as income.
29 May 2010
It is a revenue receipt and taxable under the Income tax Act,1961.
Citation:-
Sahney Steel and Press Works Ltd.
Vs.
Commissioner of Income-tax [1997] 228 ITR 253 (SC)
Citation:-
Sahney Steel and Press Works Ltd.
Vs.
Commissioner of Income-tax [1997] 228 ITR 253 (SC)
29 May 2010
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