Under
Sec. 28 of the income tax act 1961, the following incomes shall be chargeable
to income-tax under the head "Profits and gains of business or
profession":
(i) The profits and gains of any business 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 in connection with
termination/modification of his agreement for managing the whole or
substantially the whole of the affairs of an Indian company or any other
company;
(b) Any person 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 or modification of the terms of the agency.
(c) any person for or in connection with the
vesting in the Government, or in any corporation owned by or controlled by the
Government, under any law for the time being imposed, of the management of any
property or business;
(iii) Income derived by a trade, professional or
similar association from specific services performed for its members.
(iv) Export incentives which include:
(a) profits on sales of import licenses,
(b) cash assistance, by whatever name called,
received or receivable against export,
(c) duty drawbacks of Customs and Central
Excise duties;
(d) any
profit on the transfer of the Duty Entitlement Pass Book Scheme
(e) any
profit on the transfer of the Duty Free Replenishment Certificate.
(v) the value of any benefit or perquisite,
whether convertible into money or not, arising during the course of the
carrying on of any business/profession.
(vi) any interest, salary, bonus, commission or
remuneration due to or received by a partner of a firm from the firm in which
he is a partner.
(vii) any sum whether received or receivable
in cash or in kind under an agreement for:—
(a) not carrying out activity in relation to any
business; or
(b) not sharing any know-how, patent, copyright,
trade-mark, license, 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.
(viii) any sum received under a Keyman Insurance
Policy including the sum allocated by way of bonus on such policy;
(ix) any sum, whether received or receivable, in
cash or kind, on account of any capital asset (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.