INCOME FROM THE HEAD OF BUSINESS OR PROFESSION
Business : - u/s 2 (13) Business includes ay type of trade, commerce and manufacture or any adventure or concern in the
nature of trade, commerce or manufacture. It is not necessary that there should be a series of transactions in a business
and that it should be carried on permanently. Neither repetition nor continuity of similar transactions is necessary. Profit of
an isolated transaction is also taxable under this head, provided that it is a venture in the nature or business or trade. IN
this connection , it is important that the intention of purchase or manufacture should be to sell at a profit .
Profession - Profession means the activities for earning livelihood that require intellectual skill or manual skill, e.g. the work
of a lawyer, doctor, auditor, engineer and so on . Profession includes vocation . Vocation means activates which are performed
in order to earn livelihood e.g. brokerage, insurance agency , music etc.
Taxable income under the head of businesses profession
Profits and gains from business and profession include following
* The profits and gains of any business or profession which was carried on by the assessee at any time during the precious year.
* Any interest, salary, bonus commission or remuneration due to or received by a partner of a firm provided that it has been allowed
as deduction in computing the taxable profits of such firm
* Income from speculative transactions (But losses from betting business have been kept separate from normal income )
* If the business of assessee is to invest in securities then profit or loss incurred due to sale/ purchase of shares will be calculate
under this head ( but debentures will not come under this head )
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