26 August 2015
If i have taken loan from a bank and on such loan govt is giving me subsidy in a way that now only 75% of the loan amt is to be repaid from my side. Then whether such 25% subsidy being received from government is taxable in any way?
I guess subsidy under discussion is NABARD back end subsidy. The amount of subsidy shall be deducted from the cost of the Plant and Machinary purchased from such loan and hence reduced depreciation
But here i am just talking about general case as in if i get a loan of RS. 40 Lacs and the amount of repayment to be made by me is Rs. 30 lacs only. So in the above case the excess Rs. 10 lacs which i am getting which i have to not repay back to the bank because government would be paying back the same, so whether such extra Rs. 10 lacs recd is my income in any sort? If yes will the same be taxable?
CAclubindia
