Scope of total Income

1. Residents: The total income of a resident includes all income from any source worldwide, which:

   • Is received in India, or

   • Accrues or arises in India, or

   • Is deemed to be received or to accrue or arise in India, or

   • Accrues or arises abroad (except for those who are not ordinarily resident in India—such individuals only include foreign income if it stems from a business or profession controlled from or set up in India).

2. Non-Residents: The total income of a non-resident includes all income that:

   • Is received or deemed to be received in India, or

   • Accrues or arises or is deemed to accrue or arise in India.

Additionally, income that accrues or arises outside India is not considered received in India simply because it is reflected in a balance sheet prepared in India. Also, income already included in the total income on an accrual basis will not be included again when it is actually received.

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