https://www.taxtmi.com/article/detailed?id=1364 Whether a government subsidy is a revenue receipt or a capital receipt depends on the object of the subsidy scheme and the intrinsic quality of the payment rather than on its form or measurement. Assistance intended to enable carrying on or improving a business is revenue in nature; assistance intended to set up, expand or modernize capital assets is capital in nature. Recurring post-commencement payments aimed at supporting operations point to revenue treatment, while schemes directed to finance expansion or modernization point to capital treatment. en-us Fri, 22 Jul 2011 09:26:28 +0530 Fri, 22 Jul 2011 09:26:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1364 Whether a government subsidy is a revenue receipt or a capital receipt depends on the object of the subsidy scheme and the intrinsic quality of the payment rather than on its form or measurement. Assistance intended to enable carrying on or improving a business is revenue in nature; assistance intended to set up, expand or modernize capital assets is capital in nature. Recurring post-commencement payments aimed at supporting operations point to revenue treatment, while schemes directed to finance expansion or modernization point to capital treatment. Articles Income Tax Fri, 22 Jul 2011 09:26:28 +0530 https://www.taxtmi.com/article/detailed?id=1364