Scope of total income.

⁴⁵5. ⁴⁶(1) Subject to⁴⁷ the provisions of this Act, the total income⁴⁷ of any previous year of a person who is a resident includes all income from whatever source derived which

             (a)   is received⁴⁸ or is deemed to be received⁴⁸ in India in such year by or on behalf of such person ; or

             (b)   accrues⁴⁸ or arises⁴⁸ or is deemed⁴⁸ to accrue or arise to him in India during such year ; or

              (c)   accrues⁴⁸ or arises⁴⁸ 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 to⁴⁷ the provisions of this Act, the total income⁴⁷ of any previous year of a person who is a non-resident includes all income from whatever source derived which

             (a)   is received⁴⁸ or is deemed to be received⁴⁸ in India in such year by or on behalf of such person ; or

             (b)   accrues⁴⁸ or arises⁴⁸ 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 received⁴⁸ 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 accrued⁴⁹ or arisen⁴⁹ or is deemed to have accrued⁴⁹ or arisen⁴⁹ to him shall not again be so included on the basis that it is received or deemed to be received by him in India.