Tax as per provisions of Income Tax Act, 1961 is charged both on revenue and capital receipts by taking them as income. Find and state from the following items of receipts, which is specifically not included in the incom

CS Executive · Tax Laws · PYQS · December 2021
Tax as per provisions of Income Tax Act, 1961 is charged both on revenue and capital receipts by taking them as income. Find and state from the following items of receipts, which is specifically not included in the income:
(A) Sum received under an agreement for not carrying out any activity in relation to any profession.
(B) Fair market value of inventory which is converted into capital asset.
(C) Amount of subsidy received which is taken into account for determination of the actual cost of the depreciable asset.
(D) Compensation received by a person in connection with termination of his employment.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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