Clause 26 - Income under head “Profits and gains of business or profession”

Profits and gains of business or profession: inclusive definition of taxable business receipts and perquisites clarified under the Bill.

Profits and gains of business or profession are chargeable to income-tax where business or profession is carried on, and the clause inclusively lists receipts treated as business income, including compensation on termination or modification of management, agency or contracts, government vesting payments, association service receipts, export incentive profits, business perquisites, partner receipts allowed as firm deductions, payments for not carrying out activities or sharing rights, Keyman insurance proceeds, inventory value on conversion to capital asset, and receipts on demolition or transfer of capital assets fully expensed under section 46.