5. Scope of total
income.- (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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