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Section 5

The document outlines the scope of total income for residents and non-residents in India, specifying that total income includes all income received or deemed received in India, as well as income accruing or arising in India. For non-residents, only income received in India or accruing in India is included, with certain exceptions for income from outside India. Additionally, it clarifies that income cannot be counted twice based on different criteria of accrual or receipt.

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36 views1 page

Section 5

The document outlines the scope of total income for residents and non-residents in India, specifying that total income includes all income received or deemed received in India, as well as income accruing or arising in India. For non-residents, only income received in India or accruing in India is included, with certain exceptions for income from outside India. Additionally, it clarifies that income cannot be counted twice based on different criteria of accrual or receipt.

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ac6392906
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Scope of total income.

5. (1) Subject to the provisions of this Act, the total income of any previous year of a
person who is a resident includes all income from whatever source derived which—
(a) is received or is deemed to be received in India in such year by or on behalf of such
person; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year;
or
(c) accrues or arises to him outside India during such year :
Provided that, in the case of a person not ordinarily resident in India within the meaning
of sub-section (6) of section 6, the income which accrues or arises to him outside India
shall not be so included unless it is derived from a business controlled in or a
profession set up in India.
(2) Subject to the provisions of this Act, the total income of any previous year of a
person who is a non-resident includes all income from whatever source derived
which—
(a) is received or is deemed to be received in India in such year by or on behalf of such
person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year.
Explanation 1.—Income accruing or arising outside India shall not be deemed to be
received in India within the meaning of this section by reason only of the fact that it is
taken into account in a balance sheet prepared in India.
Explanation 2.—For the removal of doubts, it is hereby declared that income which
has been included in the total income of a person on the basis that it has accrued or
arisen or is deemed to have accrued or arisen to him shall not again be so included on
the basis that it is received or deemed to be received by him in India.

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