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FAQs on Income Tax V - Income from Profit or gains from Business or Profession

1. Please explain Income under the head Profit/gains from Business/ Profession?

According to Income Tax Act, 1961 income under this head is defined as the income earned by assessee as a profit or gain in his business or profession. Income under this head must follow these conditions :

• there must be a business/ profession
• Business/ profession is being carried by assessee
• Business/ profession have been carried out by assessee in assessment year for which income tax is filling

2. What is chargeable under the head of Profit/gains?

• Profits from any business or profession during assessment year
• Profits on sale of a license granted under the Imports (Control) Order, 1955, (EXIM control Act, 1947)
• Cash received or due by any person against exports under government schemes
• Any benefit whether it is not in cash coming from business/ profession
• Any profit, salary, bonus or commission received by company partners

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