GENERAL KNOWLEDGE

Detailed explanation-1: -Interestingly, section 28(iv) of the Income Tax Act, 1961 provides that any benefit or perquisite arising from exercise of business or profession shall be taxed under the head “Profits and Gains from Business or Profession”(PGBP).

Detailed explanation-2: -Under section 28, the following income is chargeable to tax under the head “Profits and gains of business or profession”: profits and gains of any business or profession; any compensation or other payments due to or received by any person specified in section 28(ii);

Detailed explanation-3: -“Perquisite” is defined in the section 17(2) of the Income tax Act as including: (i) Value of rent-free/accommodation provided by the employer. (ii) Value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer.

Detailed explanation-4: -Income from Profits and Gains from Business or Profession (PGBP) Profit and gains of Business or profession (also known as PGBP) is third head in computation of income apart from four incomes, namely, income from salary, income from house property, income from capital gains and income from other sources.