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.
CAclubindia
