Income from business or professions
The following income is chargeable under the head ‘profits and gains from business or profession’:
- Gains from any business carried on by the assessee during the year.
- Income derived from trade, profession or any other similar service.
- 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.
- Interest, salary, bonus, commission or remuneration due or receivable by the partner from the partnership firm.
- 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.