Professional income is the same except that your income is from a profession that has a governing body. Yet, if an assessee, who is a professional and an expert, contemporaneously carries on a trade which is annexed to the exercise so such a profession and if, by doing so, he can take advantage of a provision in the fiscal Act by claiming an allowance or rebate, and if such a claim carries a lighter burden of tax, then he has the right to take advantage of the same (Dr. P. Vadamalaysn vs. CIT (1969) 74 ITR 94 (Mad)). Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. What is business: In brief, Business includes any trade, commerce and manufacturing of goods with a purpose of making profit within the permissible laws of country. This is not any kind of advertisement or solicitation of work by a professional. Know the difference between VAT and Non-VAT and the forms that you might need to be tax compliant. “Business” simply means any economic activity carried on for earning profits. social or religious). Calculate business or professional income, get industry codes, and report various income types. Meaning of.. ' Business or Professions' as per Income Tax Act. Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. We are CNG Pump Dealers. Is it correct ??? the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year; any compensation or other payment due to or received by,—any person, by whatever name called, managing the whole or substantially the whole of the affairs of an Indian company, at or in connection with the termination of his management or the modification of the terms and conditions relating thereto; income derived by a trade, professional or similar association from specific services performed for its members ; the value of any perquisite or benefit arising from business or profession , whether convertible into money or not,; any interest, commission , salary, remuneration , or bonus due to, or received by, a partner of a firm from such firm : any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy. The Supreme Court in Lakshminarayan Ram Gopal and Son Ltd. vs. Government of Hyderabad (1954) 25 ITR 449 at page 459 held: “The activities which constitute carrying on business need not necessarily consist of activities by way of trade, commerce or manufacture of activities in the exercise of a profession or vocation. But it seems to me, as at present advised, that a ‘profession’ in the present use of language involves the idea of an occupation requiring either purely intellectual skill or if any manual skill, as in painting and sculpture, or surgery, skill controlled by the intellectual skill or if any manual skill, as in painting and sculpture, or surgery, skill controlled by the intellectual skill of the operator as distinguished from an occupation which is substantially the production, or sale, or arrangements for the production or sale of commodities. otherwise if he make a firm of CA or Firm of Adv then it will be business ?? 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