Lpg subsidy
jatin aswani (ARTICLE ASSISTANT) (102 Points)
14 May 2015
Whether lpg subsidy received by individuals is taxable or not???
jatin aswani (ARTICLE ASSISTANT) (102 Points)
14 May 2015
CA HAYEDAR SHAIKH
(Practice )
(622 Points)
Replied 14 May 2015
Dear Jatin,
As you pay the bill for Gas for using in home and not for the business.
Therefore it is in the nature of Personal expenses and not the business expenes.
Hence, it is not taxable.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 14 May 2015
Recent clarification by the Ministry of Finance (Press Release, dated 05.05.2015):
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Certain doubts have been raised in a section of the media about the applicability of the official amendment moved in the Finance Bill, 2015 in the Lok Sabha on 30th April, 2015 with respect to definition of ‘income’.
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Sub-section (2) of section 145 provides that the Central Government may notify Income Computation and Disclosure Standards (ICDS) for any class of assessees or for any class of income.
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The Central Board of Direct Taxes (‘CBDT’) notified ICDS on 31.3.2015 vide Notification number S.O. 892 (E) after wide consultations with the stakeholders for which the draft was placed in the public domain.
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The ICDS is applicable to persons having income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” and following Mercantile System of Accounting.
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This is not applicable to individuals not having any income chargeable under the head “Profits and gains of business or profession” and receiving LPG subsidy or any other subsidy which is for the welfare of the individual.
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The Finance Bill, 2015 proposes to align the definition of Income with that provided in ICDS for this purpose.
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To restate the position, the provision in the Finance Bill, 2015, will not affect the LPG subsidy and other welfare subsidies received by individuals.
N GANESHAN.
(CA FINAL STUDENT - PRACTITIONER)
(921 Points)
Replied 14 May 2015
Ashok J
(CA Final)
(880 Points)
Replied 16 May 2015
You pay 800 rs for gas. govt gives back 400....its only reimbursement of your personal exp....not an income
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