ABOUT TAXABLE OR NOT TAXABLE INCENTIVE RECEIPT

HII, RESPECTED EVERYONE
My client has running petrol pump business and whom have nayara agency, in nayara ledger to receipt i see first is a (HSD/MS) Product linked incentive and second is (HSD/MS) Channel Incentive, so i want to know that, is a revenue receipt or capital receipt and is a taxable receipt or non taxable in income tax,


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Replies (2)
Quick Summary
This discussion clarifies whether incentives received by a petrol pump business from Nayara are taxable or non-taxable. It confirms that both product-linked and channel incentives are considered revenue receipts. Therefore, these incentives are subject to income tax and are taxable.

It is revenue receipt and subject to taxation
Is a revenue receipt or capital receipt

-> It is REVENUE RECEIPT.


and


is a taxable receipt or non taxable in income tax,

-> it's TAXABLE RECEIPT as per Applicablity...

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