PROFITS AND GAINS OF BUSINESS OR PROFESSION [SECTION 28 TO 44DB]

CHARGING SECTION [SECTION 28]

Following incomes are taxable under the head profits and gains of business or profession:

(a) The profits and gains of any business or profession carried on by the assessee at any time during the relevant previous year;

(b) Profits on sale of a licence granted under the Imports (Control) Order, 1955;

(c) Cash assistance received or receivable by any person against exports under any scheme of the Government of India;

(d) Any duty of customs or excise repaid or repayable as drawback to any person against exports;

(e) The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession;

 (f) Any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by a partner of a firm from such firm;

(g) Any sum, whether received or receivable in cash or kind,

(i) Under an agreement for not carrying out any activity in relation to any business or profession [Amendment vide Finance Act, 2016 w.e.f. 1st April, 2017]; or

(ii) Not sharing any know-how, patent, copyright, trademark, licence, franchise or any other business or commercial rights of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services.

(h) Any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.

(i) Income from speculative transaction.

Reference:

ICSI

ICAI

Income Tax Law & Practice by Gaur & Narang