Treatment of capital subsidy.
This query is : Resolved
27 April 2012
Sir/Madam,
I want to know the treatment of capital subsidy in Income Tax Act.
As per income tax Fixed Asset subsidy will be deducted from Historical Cost of Asset and Revenue Subsidy will be deducted from Exp. for which it relate.
But I have not find Treatment of Capital subsidy whether it will be taxable or not and how it will be taxable.
As per AS-12, Capital subsidy will be credited to Capital Reserve.
Please provide treatment of Capital Subsidy in Income Tax.
Thanks
I want to know the treatment of capital subsidy in Income Tax Act.
As per income tax Fixed Asset subsidy will be deducted from Historical Cost of Asset and Revenue Subsidy will be deducted from Exp. for which it relate.
But I have not find Treatment of Capital subsidy whether it will be taxable or not and how it will be taxable.
As per AS-12, Capital subsidy will be credited to Capital Reserve.
Please provide treatment of Capital Subsidy in Income Tax.
Thanks
27 April 2012
Capital subsidy is not chargable to tax.
27 April 2012
for further clarification u can refer section 45.
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Free lancer income
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Suggestions required for income tax filing-software (FY 2025-26)
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
