Profits and gains of any business or profession carried on by assessee at any
time during previous year.
Compensation or other payment due to or received by any person –
(a) managing whole or substantially whole of affairs of an Indian company or
any other company in India at or in connection with the termination of
his management or modification of the terms and conditions relating
thereto;
(b) on termination or modification of contract of his agency in India;
(c) For vesting the management of any property or business in Government
or any corporation owned or controlled by the Government.
Income derived by trade, professional or other similar association from specific
services rendered to its members. This clause is an exception to general rule
that income from mutual activity is not chargeable to tax.
Profits on sale of import licence; or Profits on transfer of Duty Entitlement Pass
Book (DEPB) or Duty Free Replenishment Certificate (DFRC) under EXIM
Policy;
Cash assistance against exports from Government of India and Duty
Drawback;
Value of any benefit or perquisite, whether convertible into money or not
arising from exercise of business or profession;
Interest, salary, bonus, commission or remuneration due to or received by
partner from the firm. Such income is taxable in hands of partners to the extent
it is allowed as deduction in hands of firm. Any amount not allowed as deduction
to firm under Section 40(b), is not taxable in the hands of partner.
Any sum received or receivable, in cash or in kind, under an agreement for –
(a) Non-competition i.e. not carrying out any activity in relation to any
business; or
(b) Exclusivity i.e. not sharing any know-how, patent, copyright, trademark,
licence, franchise or any other business or commercial right of similar
nature or information or technique likely to assist in the manufacture or
processing of goods or provision of services.
Exceptions : However, sum received for transfer of business, or transfer of
right to manufacture, produce or process any article/thing, which is
chargeable under ‘Capital Gains’ is not taxable under this Section.
Any sum (including bonus) received under Keyman Insurance Policy.
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