Section 28 ITA 1961 charges INCOME FROM BUSINESS OR PROFESSION. Which is INCLUDED as business income?
Answer & Solution
Correct answer: C.
1. Section 28 Income Tax Act 1961 enumerates incomes chargeable under 'Profits and gains of business or profession':
2. (i) Profits and gains of business or profession;
3. (ii) Compensation or other payment received on termination of agency, modification of agreement, or vesting of management;
4. (iii) Income derived by trade, professional or similar association from specific services performed for its members;
5. (iv) Profits on sale of import licence, cash assistance, customs duty drawback (export incentives);
6. (v) Value of any benefit or perquisite arising from business or profession;
7. (vi) Any sum received in cash or kind on account of any capital asset (other than land/goodwill/financial instrument) used for business and demolished/destroyed/discarded/transferred;
8. (vii) Speculation business income.
9. Sections 30-43D prescribe deductions (rent, repairs, depreciation, interest, etc.).
10. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 28_
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