Items Chargeable Under the Head Business or Profession (Section 28)
Sec. 28 Income under the head business or profession
(i) Profits and gains of business or profession. Speculation business shall be treated as distinct and separate from other business as speculation losses to be treated separately.
(ii) Compensation or other payment for
- Termination or modification of managing agent’s agreement in relation to an Indian company.
- Termination or modification of managing agent’s agreement in relation to any other company in India.
- Termination or modification of contract relating to an agency in India.
- Vesting of management of property or business with Government / Corporation.
(iii) Income received by a trade or professional association from services rendered to members.
(iiia)
(iiib)
(iiic)
(iiid)
(iiie) Export incentives taxable as business income:
Profit on sale of import license.
Cash assistance against exports.
Duty drawback.
Profit on transfer of Duty Entitlement Pass Book (DEPB) Scheme.
Profit on transfer of Duty Free Replenishment Certificate (DFRC).
(iv) Value of benefit or perquisite arising from business / profession whether convertible into money or not.
(v) Interest, salary, bonus commission or remuneration received by a partner of a firm from such firm.
(vi) Sum received under key man insurance policy including sum allocated by way of bonus on such policy.
(va) Sum received or receivable in cash or in kind under an agreement for-
- Not carrying out any activity in relation to business or
- Not sharing any Know-how, Patent, Copyright, Trade-mark, License, Franchise or any other business or Commercial Right of similar nature of information or technique likely to assist in the manufacturing or processing of goods or provision for services.
COMPUTATION OF INCOME UNDER THE HEAD BUSINESS OR
PROFESSION (SECTION 29)
The income under the head “Profits or Gains of Business or Profession” shall be computed in accordance with provisions contained in Sections 30 to 43D.
