Section 28 - Profits and gains of business or profession

Section 28: What counts as income under profits and gains of business or profession for tax purposes

Income chargeable under 'Profits and gains of business or profession' includes profits of any business or profession carried on during the previous year; compensation or payments on termination or modification of management, agency or contracts; income of trade/professional associations for services to members; specified export-related receipts and duty remission profits; business-related benefits or perquisites; partner remuneration (subject to adjustments for nondeductible amounts); sums for non-compete or non-sharing agreements; receipts under Keyman insurance; prescribed fair market value of inventory converted to capital asset; amounts on demolition/transfer of capital assets where investment allowance was claimed; speculative activities treated as distinct business; letting a residential house is excluded.