Which of the following incomes is not included in section 26(2) of the Income-tax Act, 2025 as income…

Section 26(2) of the Income-tax Act, 2025 (formerly s.28 of the Income-tax Act, 1961) lists the incomes chargeable under the head 'Profits and gains of business or profession'. It includes the profits and gains of any business or profession carried on by the assessee at any time during the tax year (clause (a)), income derived by a trade, professional or similar association from specific services performed for its members (clause (d)), and any interest, salary, bonus, commission or remuneration received by a partner from the firm, to the extent allowed as a deduction to the firm under section 35(e) (clause (g)).

Income from the activity of owning and maintaining race horses is not listed there. It is computed under the head 'Income from other sources', where section 94(5) allows the expenses of maintaining the horses despite the general bar in section 94(4), and under section 115 a loss from this 'specified activity' can be set off only against income from the same activity and carried forward for up to four tax years.