Section 28 → Section 29
Profits and gains of business or profession (Basis of Charge)
Quick Answer
Section 28 of the Income Tax Act, 1961 (Profits and gains of business or profession (Basis of Charge)) corresponds to Section 29 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 28
Section 28 of the 1961 Act sets out the rules on profits and gains of business or profession (basis of charge). Charging section for income from business/profession, export incentives, non-compete fees, and keyman insurance proceeds.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 28 is retained and renumbered as Section 29 of the Income-tax Act, 2025. Expanded. Value of any benefit or perquisite arising from business is now tightly linked with the new TDS provisions.
The transition impact on Section 28 is assessed as High. Defines the scope of commercial taxation.
Sec 28
Provision Summary
Charging section for income from business/profession, export incentives, non-compete fees, and keyman insurance proceeds.
Sec 29
Provision Summary
Expanded. Value of any benefit or perquisite arising from business is now tightly linked with the new TDS provisions.
Key Changes & Highlights
- Digital content monetization (ad revenues, sponsorships) explicitly classified under PGBP.
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Frequently Asked Questions
Which subject does Section 28 of the 1961 Act cover?
Section 28 of the Income Tax Act, 1961 covers profits and gains of business or profession (basis of charge). Charging section for income from business/profession, export incentives, non-compete fees, and keyman insurance proceeds.
What is the new section number for Section 28 under the Income-tax Act, 2025?
Section 28 of the Income Tax Act, 1961 maps to Section 29 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Expanded. Value of any benefit or perquisite arising from business is now tightly linked with the new TDS provisions.
How does the Income-tax Act, 2025 affect Section 28 in practice?
The transition impact for Section 28 is rated High. Defines the scope of commercial taxation.
What is new about Section 28 under the Income-tax Act, 2025?
Digital content monetization (ad revenues, sponsorships) explicitly classified under PGBP. These points are specific to Section 28 (Profits and gains of business or profession (Basis of Charge)).
Disclaimer: This mapping of Section 28 (Profits and gains of business or profession (Basis of Charge)) to Section 29 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 28 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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