Section 7 : Computation of income from business

1) The profits and benefits made by any person in any year from any business shall be the income of that business of that person in that income year.

2) In computing the profits and benefits earned by any person from the business in any income year, it shall be computed so as to include the following amounts received by that person within that year:

a) Service charge,

b) Amount obtained from the disposal of stock-in-trade,

c) Net profit derived from the business property or business liability of any person computed pursuant to Chapter 8,

d) Amount considered to have been derived pursuant to clause (a) of Sub-section (2) of Section 4 of Schedule II from the disposal of depreciable property of the business,

e) Gift received from any person in respect of the business,

f) Amount received for having accepted any restriction in respect of the operation of the business,

g) Notwithstanding that the amount received by any person is of such nature that it is included in income from investment, the amount received by such a person being directly related to his business, and

h) Other amounts liable to be included pursuant to Chapter 6 or 7 or Section 56 or 60.

3) Notwithstanding anything contained in Sub-section (2), the amounts deductible under sections 10, 54 and 69 and payments from which tax is withheld finally may not be included in computing the profits and benefits derived from the operation of the business.