Basis of Charge under Profits and Gains from Business or Profession as per the Income tax act,1961

Under section 28, the following income is chargeable to tax under the head “Profits and gains of business or profession”:
a. profits and gains of any business or profession;
b. any compensation or other payments due to or received by any person specified in section 28(ii);
c. income derived by a trade, professional or similar association from specific services performed for its members;
d. the value of any benefit or perquisite, whether convertible into money or not,arising from business or the exercise of a profession;
e. export incentive available to exporters;
f. any interest, salary, bonus, commission or remuneration received by a partner from firm;
g. any sum received for not carrying out any activity in relation to any business or not to share any know-how, patent, copyright, trademark, etc.;
h. any sum received under a Key man insurance policy including bonus;
i. profits and gains of managing agency;                                                                                                                                                                                                j. maintenance charges for let out property are taxable as income from business and
k. income from speculative transaction.
Income from the aforesaid activities is computed in accordance with the provisions laid down in sections 29 to 44D.

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