Meaning of Business and Profession Business simply means any
economic activity carried on for earning profits. According to
Sec 2(3) business is “any trade, commerce, manufacture or any
adventure in the nature of trade commerce and manufacture”. Any
transaction with a motive of selling at profits included under
this concept. It is not necessary that there should be a series
of transaction in a business and it should be carried on
permanently. Profession is an occupation requiring purely
intellectual skills or manual skills controlled by the
intellectual skill of the operator. e.g. Lawyer, doctor,
engineer etc. So profession refers to those activities where the
livelihood is earned by the persons through their intellectual
or manual skill. The following income shall be chargeable to
income-tax under the head Profits and gains of business or
profession, 1) The profits and gains of any business or
profession which was carried on by the assessee at any time
during the previous year 2) Any compensation or other pa