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Not necessarily. The key point is what the subsidy represents and how it is treated in computing income. If you mean a subsidy received from a non-government authority/person and it is already adjusted against the selling price, you should not automatically “add it back” merely because it is called a subsidy. Under the Income-tax provisions, assistance in the form of subsidy/grant/cash incentive etc. can be taxable under Section 2(24)(xviii), but amounts taken into account for determining the actual cost of an asset are specifically treated differently. Example Suppose: Normal selling price = ₹100 Subsidy = ₹20 Customer pays = ₹80 If the ₹20 is simply a price subsidy/discount, the accounting and tax treatment depends on who provides it, the nature of the subsidy, and the specific scheme. You cannot conclude that ₹20 must always be added back just because it is a subsidy. So, for an exam question, look carefully at the wording: Subsidy adjusted against price ≠ automatically add back. The nature and purpose of the subsidy determine the treatment. If you share the exact question or the full case/numbers, I can show you exactly why it is or isn't added back.