Section 28: Charging Section
Following income shall be taxable under the head PGBP.
- Any profit or gain of any Business/Profession.
- Profit on sale of import entitlement license.
- Cash compensatory support or duty drawback.
- Profit on sale of DEPB [duty entitlement pass book scheme] or Duty Free Replenishment certification [DFRC]
- Any amount received under Key-Man insurance policy.
- Any gift/benefit/perquisite arising due to business or profession.
- Any interest, salary, bonus, commission received by partner from partnership firm [to the extent allowed uls 40(b) to firm].
- Non-compete Fees [not carrying out any activity in relation to any business or profession or not sharing any know-how, patent, copyright, trade-mark etc.).
- Any compensation or other payment due to or received by, any person, at or in connection with the termination or modification of the terms and conditions, of any contract relating to his business.
- Income derived by a trade, professional or similar association from specific service performance for its members.
- FMV of inventory as on the date on which it is converted into Capital asset.
Accordingly, any compensation received or receivable, whether revenue or capital, in connection with the termination or the modification of the terms and conditions of any contract relating to its business shall be taxable as business income.
Speculation Business
It means a transaction in which a contract for the purchase or sales of any commodity including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.
Transaction not deemed to be speculative transaction
- Hedging contract in respect of raw materials or merchandise or stocks and shares.
- Forward contract.
- Trading in derivatives through recognized stock exchange.
- Trading in commodity derivatives through recognized stock exchange which is chargeable to commodities transition tax (CTT). However,
