Income Tax

Income from business or professions

The following income is chargeable under the head ‘profits and gains from business or profession’:

1. Gains from any business carried on by the assessee during the year.
2. Income derived from trade, profession or any other similar service.
3. Export-oriented units that are now to be taxed only to the extent of 20 per cent of the total profits spread over five years.
4. Interest, salary, bonus, commission or remuneration due or receivable by the partner from the partnership firm.
5. Income from speculative transactions

For charging the income under the head "Profits and Gains of business," the following conditions should be satisfied:

• there should be a business or profession
• the business or profession should be carried on by the assessee.
• the business or profession should have been carried on by the assessee at any time during the previous year.