# Incomes Chargeable under PGBP [Section 28]
Section 28 is the charging section listing what falls under business/profession income.
## The Chargeable Items
1. Profits of any business/profession carried on by the assessee at any time during the previous year.
2. Compensations received on termination/modification of:
- Management of a company's affairs,
- An agency in India,
- Management of government-owned/controlled property or business,
- Terms of business contracts.
3. Income from specific services performed by a trade, professional or business association for its members.
4. Export incentives for assessees in export business:
- Profit on sale of Import Entitlements
- Cash Assistance against exports
- Customs/Excise Duty Drawback
- Profit on transfer of DEPB scheme / Duty-Free Replenishment Certificates.
5. Perquisites from business/profession — whether in cash or kind, convertible into money or not (e.g., rent-free accommodation).
6. Sums received by partners from their firm:
- Interest, salary, bonus, commission (by any name) — taxable as business income to the extent the firm was allowed deduction. If disallowed to the firm, NOT taxed to the partner.
- Share of profit from the firm is EXEMPT under Sec 10(2A).
7. Sums under an agreement (received/receivable, cash/kind):
- Compensation for NOT carrying out an activity (non-compete).
- Compensation for NOT sharing IP / commercial rights (know-how, patents, trademarks, techniques).
- Exceptions: Sum for transferring the right to manufacture/produce/carry on business → taxed under Capital Gains; compensation from the Montreal Protocol multilateral fund → NOT assessable under PGBP.
8. Keyman Insurance Policy proceeds received by employer → taxable as business income.
9. Conversion of Inventory to Capital Asset → FMV on date of conversion is taxable as business income.
10. Capital assets linked to Sec 35AD → proceeds taxable when the asset is discarded/destroyed/transferred (irrespective of the 8-year link under 35AD(7A)).