Gas subsides amount in bank account

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Quick Summary

This discussion clarifies whether a refunded gas subsidy amount credited to your bank account is considered taxable income or exempt under the Income Tax Act. The consensus is that LPG subsidies are exempt from tax, with a reference provided to the Finance Ministry's stance on the matter. Guidance on the appropriate accounting entries for both the initial payment and the refund is also sought.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

05 December 2020 I.t.assess gas amount paid to through on bank account Rs:800/- some amount refunded rs:180/- amount credited in Assess bank account.
Question:
Assess refund amount other income added or exempt in I.t. act. and accounting entries passed both transactions

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 December 2020 It's an exempt income.

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Nikhil Kaushik

Nikhil Kaushik (Expert)

05 December 2020 please refer https://economictimes.indiatimes.com/news/economy/policy/lpg-subsidy-not-to-be-taxed-finance-ministry/articleshow/47165494.cms

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