Income-tax Act, 2025

Income under head Profits and gains of business or profession - Section 26

D.Profits and gains of business or profession

Income under head "Profits and gains of business or profession".

26. (1) The incomes referred to in sub-section (2) shall be chargeable to income-tax under the head "Profits and gains of business or profession".

(2) The income under sub-section (1) shall include

(a) the profits and gains of any business or profession carried on by the assessee at any time during the tax year;

(b) any compensation or other payment, due to, or received, by any person by whatever name called,

(i) wholly or substantially managing the affairs

(A) of an Indian company; or

(B) in India, of any other company; or

(ii) holding any agency in India for any part of business activities of any other person; or

(iii) for any contract relating to business,

in connection with termination of management, office, agency or contract, as the case may be, or modification of terms and conditions relating thereto;

(c) any compensation or payment, due to, or received by, any person for vesting of the management of any property or business, in the Government including any corporation owned or controlled by the Government under any law in force;

(d) income derived by a trade, professional or similar association from specific services performed for its members;

(e) profits on sale of import licence, cash assistance against export, duty drawback or duty remission or any other export incentive, received or receivable;

(f) the value of any benefit or perquisite arising from business or the exercise of a profession, whether

(i) convertible into money or not; or

(ii) in cash or in kind or partly in cash and partly in kind;

(g) any interest, salary, bonus, commission or remuneration, by whatever name called, which is due to, or received by, a partner of a firm from such firm to the extent allowed under section 35( .... To read the full section download the app from Google Play store