Profession – Section 2(86) | Income-tax Act, 2025 vs 1961

§ 2(86) · Income-tax Act, 2025

Profession

ITA 2025 · 2(86) ITA 1961 · 2(36)
Definition — Section 2(86)

Includes vocation. The definition is intentionally brief — by including vocation, it covers not just formally recognised professions requiring specialised qualifications but also any occupation or calling a person pursues with skill and regularity.

Act Comparison
Income-tax Act, 2025
2(86)
Profession
Income-tax Act, 1961
2(36)
Profession
Key Points
  • Maps to Section 2(36) of the 1961 Act — identical in substance in both Acts
  • By including vocation, the definition is wider than just formally qualified professions — it covers any skilled calling pursued regularly
  • Specified professions under section 62(4) of the 2025 Act include legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology and company secretary — these are required to maintain books of account
💡 Practical Note

Professionals carrying on a specified profession under section 62(4) of the 2025 Act can opt for presumptive taxation at 50% of gross receipts under section 58 (Table: Sl. No. 3) — provided gross receipts do not exceed ₹50 lakh (or ₹75 lakh where cash receipts are within 5% of total receipts). This dramatically simplifies compliance for eligible professionals.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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