Profits And Gains From Business Or Profession

Profits And Gains From Business Or Profession

Profits and Gains from Business or Profession Income Tax Treatment for Business and Professional Income In India, the taxation of profits and gains from business or profession is governed by Section 28 to 44DB of the Income Tax Act, 1961. This section specifically deals with the income earned from business and professional activities, the allowable deductions, and the treatment of different kinds of business and professional income. Here's a breakdown of how this income is treated for tax purposes: 1. Taxable Business or Professional Income: Income earned from business or profession is classified as Profits and Gains of Business or Profession (PGBP) under Section 28. This is the gross income derived from carrying on a business or profession. Business Income includes: Income from carrying on any trade, commerce, or profession. Income from manufacturing, selling, or distributing goods. Income from carrying on a profession (e.g., doctors, lawyers, chartered accountants). Professional Income includes income from: Professions referred to in Section 44AA (e.g., legal, medical, technical, or other similar professions). The following are typically included in business income: Sales revenue or turnover. Rent or profit from the sale of business assets. Income from the sale of stock-in-trade. Other business-related incomes, like commission or

Updated July 15, 2026