Subsidy received form goverment

You mean to ask if it is taken as income or not right?

So in case of "GAS" subsidy then the same should be taken as income if u claiming Gas expenses.

Thats my view to it..

Income from other source  will be taxed.

agreed with Tushar...even if you are not claiming any expense on gas, still subsidy received would normally be taxable as is the case with other revenue subsidies.  As on today there is no clarity with regards to any attempt from government or income tax department to exclude the same from taxation (as such even if they dont want to tax it, they would require an amendment in the act or a specific CBDT circular to back it up).

 

refer this article posing possibilities regarding taxation of such subsidies..

 

https://www.business-standard.com/article/economy-policy/another-reason-to-pay-tax-lpg-subsidy-113121200359_1.html

I came to know that tax subsidy received through bank accounts during the financial year 2013-2014 would tantamount to penalising those who faithfully complied with the government instructions, leaving  all those  who have abstained  from doing so unaffected  by this decision.

CBDT has to clarify this matter well in advance of the date of filing the tax returns for the current financial year,  to enable tax payers to file  their returns correctly.  This, however, does not apply to those not coming under the tax bracket, and who are not required to file return.

I want to know why it shall be later considered by many(having taxable income ) as income from other sources when we are receiving the amount paid excess as subsidy (bank credit)..

 

 

because it becomes are revenue subsidy once it comes in cash form and thus become tangible income instead of notional income

Hello,

We don’t claim gas cylinder bill as business expenses.  So subsidy received for that is not taxable. It is personal expenses.

For business activity commercial gas cylinder is available on which subsidy is not available. Question of taxation doesn't arise.

since when Income is linked with expense for the purpose of taxation? if you get a direct transfer to your bank account which is not in nature of capital subsidy, it automatically will become your income unless the govt brings in an amendment to specifically exclude such transfers from the ambit of section 56.

LPG Gas subsidy is a reimbursement of personal expenditure just to meet out your personal expenditures and Income Tax Act does not give any deduction for expenditure of  personal nature (excluding business expenditures); So as per My personal opinion, such LPG Gas subsidy could not form part of  income in case of Individual Tax Payers.

Prior to credit of subsidy amount in our Bank Accounts, we used to get Gas Cylinders at lower rates. Now, we are getting the excess amount paid by us reimbursed by the Govt.through Gas Companies. It is in the nature of Refund of Extra cost recovered from us. The whole arrangement has been done to ensure that the prescribed number of Subsidized Gas cylinders are received only by genuine recepients. Thus in my opinion it does not form part of "Taxable Income"

LPG Gas subsidy is a reimbursement of personal expenditure just to meet out your personal expenditures and Income Tax Act does not give any deduction for expenditure of personal nature (excluding business expenditures); So as per My personal opinion, such LPG Gas subsidy could not form part of income in case of Individual Tax Payers,

 

firstly its paid in cash and than rec. in capital accoaunt, its part of capital account not a income