- Any subsidy or grants or cash incentive or duty drawback, waiver etc by Central Govt or State Govt or any authority or Body [Other than referred in explanation 10] shall be treated as income Section 2(24)(xviii).
- If subsidy received for acquiring an asset, it shall be deducted from actual cost of asset.
- Any other subsidy/ Waiver of loan/ Govt. grant from Govt’s/ any other authority/body will be taxable under Profit or Gain from Business or profession.
- Any subsidy/ Grant received by trust or institution (established by central govt or state govt) as a corpus fund from central govt shall not be treated as income.
- If loan taken for acquisition of asset is waived then amount waived shall be reduced from actual cost of asset [Block Asset]
- Above provision not applicable on LPG subsidy or any other subsidy which is for the welfare of the individual.
