Hi guys this is my first block so please read my blog and share my blog with your friends in this blog let's see how a business games profit in this blog species how to compute the income of SAP engaged in carrying on of the business professions and vocations before progressing into the chapter let us understand the term used in the heading of this blog surplus arising out of recurring activity whatever we on over and above our purchase price + cost of processing is known as gross profit profit is more related to the axis earned from dealing in stock in trade surplus earn from an isolated or one time activity this is more related to Capital transaction compensation received from the insurance company when an asset is destroyed will result in again if the compensation is over and above the book value of an asset this known as gain business according to section to the term business includes any trade commerce or manufacturer or any adventure concern in the nail nature of trade commerce manufacturer professions is nothing but law does not different professions wherever loss not defined we go by its popular meaning business parallelon theory income and from carrying on an activity which has been acquired through formal system of education doctors lawyer income and from Exhibition of skill can be called profession of computing income of a business entity or professionals this chapter covers right from a blue chip company or f Fortune 500 company to a pet shop near or home largest income to the RSS from his head the following income or taxable under this head income from carrying of phone business professions or vocations during the previous year compensation received for termination modification of any managerial contract compensation received for termination modification of any agency agreement financer 2018 has clarified that any compensation received receivable whether revenue or capital in connection with termination or modification of any contract shall be taxable only at business income non completes fees income derived by any trade professional or similar association from service rendered to their member export intensive including duty drawback cash intensive etc value of any benefit or perque site arising from business or professions interest salary bonus or function received by a partner from the firm subsiders received other than subsiders which can be associated with the differentiable asset speculative business. 
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