Clause 33 - Gross earnings. - Direct Taxes Code, 2010

Gross earnings. 33. (1) The gross earnings referred to in sub-section (3) of section 32 shall be the aggregate of the following, namely:— (i) the amount of any accrual or receipt from, or in connection with, the business; (ii) the value of any benefit or perquisite, whether convertible into money or not, accrued or received from, or in connection with, the business; (iii) the value of the inventory of the business, as on the close of the financial year; and (iv) any amount received from a business after its discontinuance. (2) The accruals or receipts referred to in sub-section (1) shall, without prejudice to the generality of the provisions of that sub-section, include the following, namely:— (i) the amount of any compensation or other payment, accrued or received, for— (a) termination or modification of terms and conditions relating to management of business, any business agreement or any agency; or (b) vesting of the management of any property or business in another person or the Government; (ii) any consideration, accrued or received under a non-capital agreement; (iii) any amount or value of any benefit, whether convertible into money or not, accrued to, or received by a person, being a trade, professional or similar association, in respect of specific services performed for its members; (iv) any consideration on sale of a licence, not being business capital assets, obtained in connection with the business; (v) any consideration on transfer of a right or benefit (by whatever name called) accrued or received under any scheme framed by the Government, local authority or a corporation established under any law for the time being in force; (vi) the amount of cash assistance, subsidy or grant (by whatever name called), received from any person or the Government for, or in connection with, the business other than to meet any portion of the cost of any business capital asset; (vii) the amount of any remission, drawback or refund of any tax, duty or cess (not being a tax under this Code), received or receivable; (viii) the amount of remuneration (including salary, bonus and commission) or any interest accrued to, or received by, a participant of a unincorporated body from such body; (ix) any sum received under a keyman insurance policy including the sum allocated by way of bonus on such policy; (x) the amount of profit on transfer, demolitation, destroys or discardment of any business capital asset (other than a business capital asset used for scientific research and development) computed in accordance with the provisions of section 42; (xi) any consideration accrued or received on transfer of carbon credits; (xii) the amount of any benefit accrued to, or received by, the person, or as the case may be, the successor in business, if— (a) it is by way of remission or cessation of any trading liability or statutory liability or it is in respect of any loss or expenditure, including a unilateral act by way of writing off such liability in his accounts; and (b) the trading liability or statutory liability or loss or expenditure has been allowed as deduction in any financial year;. (xiii) the amount of remission or cessation of any liability by way of loan, deposit, advance or credit; (xiv) the amount recovered from a trade debtor in respect of a bad debt or part of debt which has been allowed as deduction in any financial year under clause (c) or clause (d) or clause (e) of sub-section (3) of section 35; (xv) the amount withdrawn from any special reserve created and maintained under any provision of this Code or the Income-tax Act, 1961, as its stood before the 43 0f 1961. commencement of this Code for which deduction has been allowed, if the amount is not utilised for the purpose and within the period specified therein; (xvi) the amount accrued to, or received by, the person from his employees as their contribution to any fund for their welfare; (xvii) the amount accrued or received on sale of any business capital asset used for scientific research and development; (xviii) any consideration accrued or received in respect of transfer of any capital asset self-generated in the course of the business; (xix) any amount accrued or received on account of the cessation, termination or forfeiture in respect of agreement entered in the course of the business; (xx) any amount accrued or received, whether as an advance, security deposit or otherwise, from the long term leasing, or transfer of— (a) whole or part of any business asset; or (b) any interest in a business asset; (xxi) any amount received as reimbursement of any expenditure incurred; (xxii) any interest accrued to, or received by, a person being a financial institution. (xxiii) any payment or aggregate of payments made to a person in a day, in respect of an expenditure incurred during the financial year or in respect of a liability incurred and allowed as a deduction in any preceding financial year,— (a) which has been made otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft; (b) which exceeds— (i) a xum of thirty fire thousand rupees if the payment is made to transporter for carriage of goods by road; or (ii) a sum of twenty thousand rupees in any other case; and (c) which has not been made in such cases and in such circumstances as may be prescribed. (xxiv) any amount standing to the credit of the Fund referred to in section 82, if— (a) income-tax has not been paid on such amount in any financial year preceding the relevant financial year; and (b) the amount is shared during the relevant financial year, either wholly or in part, with a recognised stock exchange or recognised commodity exchange. (3) The gross earnings from business shall not include the following, namely:— (a) any dividend; (b) any interest other than interest accrued to, or received by, a person being a financial institution; (c) any income from letting of house property which is included under the head income from hosues propery; (d) any income from the transfer of an investment assets.