Scope Of Total Income (Section 5)
Section 5 of the Income-tax Act, 1961 states the provisions relating to income that is taxable in the hands of the person during the PY,
| S. No. | Particulars | Resident and Ordinarily Resident (ROR) | Resident but not-Ordinarily Resident (RNOR) | Non-Resident (NR) |
|---|---|---|---|---|
| 1 | Income received or is deemed to be received in India | Taxable | Taxable | Taxable |
| 2 | Income accrues or arises or is deemed to accrue or arise in India | Taxable | Taxable | Taxable |
| 3 | Income accrues or arises outside India but business & profession controlled or set up in India | Taxable | Taxable | Not Taxable |
| 4 | Income accrues or arises outside India and business & profession controlled or set up outside India | Taxable | Not Taxable | Not Taxable |
| 5 | The past foreign (un-taxed) income brought into India | Not Taxable | Not Taxable | Not Taxable |
Note: Once the income is taxed on accrual basis, tax need not be paid during the actual receipt of such income.
What Do You Mean By Past Foreign (Un-Taxed) Income?
Income of the year preceding to the relevant previous year which accrues/arises/received outside India and remitted to India during the current previous year.