Treatment of capital subsidy.
This query is : Resolved
27 April 2012
Sir/Madam,
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.
Thanks
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.
Thanks
27 April 2012
Capital subsidy is not chargable to tax.
27 April 2012
for further clarification u can refer section 45.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
