In sec 28 of income tax act, it is given that income derived by trader, proffessionaland any other related association from special service performed for it member, then it is taxable under BPV head.
Can any one explain meaning of special service ( which type of service) and also give example related to its.
Dear Gaurav,
VG Sir elaborated this point into taxability of Mutual Concern
Income of a Mutual Concern is taxable in the following circumstances:
a) Where the mutual concern is a trade, professional or similar association, then the income derived from specific services performed for its members is taxable as Profits and Gains of Business or Profession under Section 28. However if mutual concern is resident welfare association, sports club, etc then the income derived from specific services performed for its members is not taxable.
The services which are not available to all the members, but available to those only who are ready to specially pay for such special services.
Can you explain Section 28 (iii)
Compensation received by a person for vesting management of property tom govt. or govt co. under any law
Any Example and why Compulsory Acquisition is not covered here....???
CCI
Pro
CAclubindia
