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