Section 28 Tax on Non Compete fees of Both  Business and Professions

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