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
CA. B.SRINIVASULU
(Expert)
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)
taxindiaconnect
(Expert)
29 May 2010
I agree with the experts
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
