Section 28

D.—Profits and gains of business or profession

Profits and gains of business or profession

28. The following income shall be chargeable to income-tax under the head “Profits and gains of business or profession”,—

(i) the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year ;

(ii) any, compensation or other payment due to or received by,—

(a) any person by whatever name called, managing the whole or substantially the whole of the affairs of an Indian company, at or in connection with the termination of his management or the modification of the terms and conditions relating thereto ;

(b) any person, by whatever name called, managing the whole or substantially the whole of the affairs in India of any other company, at or in connection with the termination of his office or the modification of the terms and conditions relating thereto ;

(c) any person, by whatever name called holding an agency in India for any part of the activities relating to the business of any other person, at or in connection with the termination of the agency or the modification of the terms and conditions relating thereto ;

(iii) income derived by a trade, professional or similar association from specific services performed for its members;

¹[(iv) the value of any benefit or perquisite whether convertible into money or not, arising from business or the exercise of a profession.]

Explanation 1.—The profits and gains of a business shall include the profits and gains of managing agency.

Explanation 2.—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.

 

 

[As amended by the Finance Act, 1965]