Amendment of section 28.
11. In section 28 of the Income-tax Act, for clause (iv), the following clause shall be substituted with effect from the 1st day of April, 2024, namely:––
“(iv) the value of any benefit or perquisite arising from business or the exercise of a profession, whether––
(a) convertible into money or not; or
(b) in cash or in kind or partly in cash and partly in kind;”.
Notes on Clauses:
Clause 11 of the Bill seeks to amend section 28 of the Income-tax Act relating to profits and gains of business or profession.
Clause (iv) of the said section provides that the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession shall be chargeable to income-tax under the head “Profits and gains of business or profession”.
It is proposed to amend the said clause so as to apply to cases where benefit or perquisite provided is in cash or in kind or partly in cash and partly in kind.
This amendment will take effect from 1st April, 2024 and will, accordingly, apply in relation to the assessment year 2024-2025 and subsequent assessment years.
