Profits and Gains of Business or Profession (PGBP)

Profits and Gains of Business or Profession is one of the five heads of income under the Income Tax Act, 1961. It includes all income earned by a taxpayer from: Running a business, Practising a profession, Any activity carried out with the intention of earning profit, Income from trade, commerce, or manufacturing, Professional income (e.g., doctors, lawyers, accountants), Compensation or benefits related to business/profession, Value of perquisites or facilities received, Profits from speculative business, Income from letting out commercial assets.

Key Points: All allowable business expenses are deducted to compute taxable income. Disallowable expenses must be added back. Net result = Taxable PGBP income.

Purpose: This head ensures that all income arising from business or professional activity is properly assessed and taxed. If you want, I can also make this more concise to match your earlier glossary style.