Subsidy treatment for regional film producers: exempt from income tax but not deductible from production cost under rule 9A. Subsidies from State Governments to producers of regional feature films are not to be charged to tax; however, under the Explanation to sub rule (1) of rule 9A of the Income tax Rules, 1962, the cost of production must be reduced by any subsidy that has been included in computing the producer's total income, and conversely subsidies not charged to tax shall not be reduced from production cost for rule 9A purposes. The amendment and the concession apply to assessment years subsequent to the amendment's effective date.
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Subsidy treatment for regional film producers: exempt from income tax but not deductible from production cost under rule 9A.
Subsidies from State Governments to producers of regional feature films are not to be charged to tax; however, under the Explanation to sub rule (1) of rule 9A of the Income tax Rules, 1962, the cost of production must be reduced by any subsidy that has been included in computing the producer's total income, and conversely subsidies not charged to tax shall not be reduced from production cost for rule 9A purposes. The amendment and the concession apply to assessment years subsequent to the amendment's effective date.
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