Profits and gains of business or profession 1The following income shall be chargeable to income- tax under the head Profits and gains of business or profession,-
the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year
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 d any person, for or in connection with the vesting in the Government, or in any corporation owned or controlled by the Government, under any law for the time being in force, of the management of any property or business
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
d any person, for or in connection with the vesting in the Government, or in any corporation owned or controlled by the Government, under any law for the time being in force, of the management of any property or business
income derived by a trade, professional or similar association from specific services performed for its members
iiia profits on sale of a licence granted under the Imports Control Order, 1955 , made under the Imports and Exports Control Act, 1947 18 of 1947
iiib cash assistance by whatever name called received or receivable by any person against exports under any scheme of the Government of India iiic any duty of customs or excise re- paid or re- payable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules, 1971
iiic any duty of customs or excise re- paid or re- payable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules, 1971
the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession 2. Inserted by the Finance Act, 1973, w. r. e. f. 1- 4- 1972. 3. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 4. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1967. 5. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1972. 6. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964.
Prior to the omission, it read as under Explanation 1-The profits and gains of a business shall include the profits and gains of managing agency.
any interest, salary, bonus, commission or remuneration, by whatever name called, 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 clause b of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted. Explanation 1-Omitted by the Direct Tax Laws Amendment Act, 1987 , w. e. f 1- 4- 1989 . 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. 1. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. Earlier, clause v was inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989 and omitted by the Direct Tax Laws Amendment Act, 1989, with effect from the same date. 2. Prior to the omission, it read as under Explanation 1-The profits and gains of a business shall include the profits and gains of managing agency.