Section 28 of Income Tax Act 1961-PROFITS AND GAINS OF BUSINESS OR PROFESSION

Section 28 of Income Tax Act 1961-PROFITS AND GAINS OF BUSINESS OR PROFESSION:

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;

 (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;

(iii) 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;

 (iv) The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession;

 (v) 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;

(vi) Any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.

 Explanation : For the purposes of this clause, the expression "Keyman insurance policy" shall have the meaning assigned to it in clause (10D) of section 10.

Explanation 1 : 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.