The provision in the Finance Bill, 2015, will not affect the LPG subsidy and other welfare subsidies
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New Delhi: The finance ministry on Tuesday clarified that LPG subsidy deposited in banks of an individual will not be taxed. Some tax experts had raised doubt over an amendment in Finance Bill, 2015 that expanded the definition of taxable income to include subsidies, grants, cash incentive and duty drawback.
“The provision in the Finance Bill, 2015, will not affect the LPG subsidy and other welfare subsidies received by individuals,” clarified the finance ministry. It said that Income Computation and Disclosure Standards (ICDS) is applicable to persons having income chargeable under the head “profits and gains of business or profession” or “income from other sources” and following mercantile system of accounting.
The Finance Bill, 2015 proposes to align the definition of Income with that provided in ICDS for this purpose, it said. LPG consumers across the country are getting subsidy directly as cash into their bank accounts so that they could buy cooking fuel at market price. Currently subsidy transfer is Rs 198.18 per cylinder.
( Source : dc correspondent )
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