Check sibling questions

Now Non compete fees Of Professions also included in Section 28

 

EARLIER

NOW

As per Section 28,

Non Compete fees

i.e. fees for not doing any business

is taxable as PGBP Income

As per Section 28,

Non Compete fees

i.e. fees for not doing any business or professions

is taxable as PGBP Income

Exceptions

Non Compete fees does not include

Amount Received on Transfer of Right to Manufacture, produce or process any article or thing

or right to carry on any business.

This is taxable under Capital Gains.

Example:- Sale of Business is taxable under Capital Gain and not PGBP

Exception

Non Compete fees does not include

Amount Received on Transfer of Right to Manufacture, produce or process any article or thing

or right to carry on any business or profession

This is taxable under Capital Gains

Example:- Sale of Business or Profession is taxable under Capital Gain and not PGBP

Maths Crash Course - Live lectures + all videos + Real time Doubt solving!

Ask a doubt (live)
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.