AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
Chargeability - (New) Section 26 / (Old) Section 28
X X X X Extracts X X X X
X X X X Extracts X X X X
.... conditions relating thereto; by any person by whatever name called,-- (i) wholly or substantially managing the affairs- (A) of an Indian company; or (B) in India, of any other company; or (ii) holding any agency in India for any part of business activities of any other person; or (iii) for any contract relating to business, (c) Compensation for government takeover - Compensation due or received when management of a business/property is taken over by the government. (d) Income of trade/professional associations - income derived by a trade, professional or similar association from specific services performed for its members (e) Export incentives - Any....
X X X X Extracts X X X X
X X X X Extracts X X X X
....disclosure fees - for not sharing any know-how, patent, copyright, trade-mark, licence, franchise or any other business or commercial right of similar nature, or information or technique likely to assist in • the manufacture or processing of goods or • provision for services; Meaning of Agreement - Means includes any arrangement or understanding or action in concert,- (A) whether or not such arrangement, understanding or action is formal or in writing; or (B) whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings; Meaning of services for the purpose of this clause [ Section 66 (29) ] • Means a servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... • Where speculative transactions carried on by an assessee are of such nature to constitute a business, the business (speculation business) shall be deemed to be distinct and separate from any other business. [ Section 26(3) ] • Any income from letting out of a residential house or a part of it by the owner shall not be included in income of PGBP and shall be chargeable only under the head "Income from house property". [ Section 26(4) ] Under Section 28 of the Income Tax Act, 1961 [ Upto 31.03.2026 ] Chargeability (i) "Profits and gain of any business or profession carried on by the assesssee at any time during the previous year. Income earned from the exercise of any "profession....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ort and import policy formulated and announced under section 5 of the Foreign Trade (Development and Regulation) Act, 1992; (iv) the value of any benefit or perquisite arising from business or the exercise of a profession, whether- (a) convertible into money or not; or (b) in cash or in kind or partly in cash and partly in kind;" [ Earlier clause substituted vide Amendment as per FA, 2023 ] (v) Interest, salary, bonus commission or remuneration due to or received by a partner of a firm from such firm . Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under section 40(b), the income under thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l assets (other than land or goodwill or financial instrument being demolished, destroyed, discarded or transferred, if the whole of the expenditure on such capital asset has been allowed as a deduction under section 35AD. Explanation 2 : Speculative business to be distinct business. Where speculative transactions carried on by an assessee are of such a nature as to constitute a business, the business (hereinafter referred to as "speculation business") shall be deemed to be distinct and separate from any other business. Explanation 3.--It is hereby clarified that any income from letting out of a residential house or a part of the house by the owner shall not be chargeable under the head "Profits and gains of business or profession"....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rictive covenant is a capital receipt. • "Loss of Agency" - Means Acting Contrary to the Principal, which is here in case the 'Company'. • "Negative/Restrictive Covenant" - Means the agreements prohibit employees from taking certain actions that may disadvantage their employer either during employment or post-employment. • Temporary letting out of plant & equipment is business income • The court held that it was a part of the normal activities of the assessee's business to earn money by making use to tis machinery by either employing it in own manufacturing concern or temporarily letting it to others for making profit for that business when for the time being it could not itself run it. -&....