Subsidy granted by the State Government to producers for the production of feature films in regional languages-Treatment of

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....come-tax. Subject: Subsidy granted by the State Government to producers for the production of feature films in regional languages-Treatment of Sir, The Board has received representations against the taxation of the subsidy granted by the State Governments to producers of feature films in regional languages. 2. The income-tax authorities have been treating the subsidy as revenue receipt inciden....

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....duction of a feature film shall be reduced by the subsidy received by the film producer under any scheme framed by Government, where such amount of subsidy has not been included in computing the total income of the assessee for any assessment year. Conversely, the amount received by producers of regional feature films, which has not been charged to tax, shall not be reduced from the cost of produc....