Capital Receipt: earnings relating to creation or expansion of capital structure, may not be income but capital receipt deductible from capital costs- Honourable Supreme Court re-affirm principal in one more context.

Capital Receipt: earnings relating to creation or expansion of capital structure, may not be income but capital receipt deductible from capital costs- Honourable Supreme Court re-affirm principal in one more context. https://www.taxtmi.com/article/detailed?id=7982 Interest earned on share application money that is deposited in separate accounts because of statutory requirement or as an incident of raising share capital is inextricably linked to the capital-raising process and is to be set off against public issue expenses; by contrast, surplus funds deposited primarily to earn income are taxable as revenue. The distinction depends on purpose and connection, and incidental receipts directly connected to capital formation are deductible from capital costs. en-us Mon, 30 Apr 2018 06:02:12 +0530 Mon, 30 Apr 2018 17:20:53 +0530 TaxTMI RSS Generator Capital Receipt: earnings relating to creation or expansion of capital structure, may not be income but capital receipt deductible from capital costs- Honourable Supreme Court re-affirm principal in one more context. https://www.taxtmi.com/article/detailed?id=7982 Interest earned on share application money that is deposited in separate accounts because of statutory requirement or as an incident of raising share capital is inextricably linked to the capital-raising process and is to be set off against public issue expenses; by contrast, surplus funds deposited primarily to earn income are taxable as revenue. The distinction depends on purpose and connection, and incidental receipts directly connected to capital formation are deductible from capital costs. Articles Income Tax Mon, 30 Apr 2018 06:02:12 +0530 https://www.taxtmi.com/article/detailed?id=7982