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Windfall profit or Windfall Gains is an unexpected profit.   

For instance:

  • winning a lottery
  • unforeseen inheritance
  • Shortage of Supply or Sudden Increase in Demand

The main feature of the Windfall Profit is it is temporary in nature. In India, a Tax on Windfall Profit is levied depending on the various parameters. This Tax is called Windfall Tax. Recently, This Tax was in the news after the Indian Government levied a Windfall tax on fuel exports.