India - Income Tax Act 2010 - Saarc

1.31 CH. II - BASIS OF CHARGE S. 5provisions (including provisions for the levy of additional income-tax) of, thisAct 43 ] in respect of the total income 43 of the previous year 44 [* * *] of every person :Provided that where by virtue of any provision of this Act income-tax is to becharged in respect of the income of a period other than the previous year,income-tax shall be charged accordingly.(2) In respect of income chargeable under sub-section (1), income-tax shall bededucted at the source or paid in advance, where it is so deductible or payableunder any provision of this Act.Scope of total income.455. 46 (1) Subject to 47 the provisions of this Act, the total income 47 of any previousyear of a person who is a resident includes all income from whatever sourcederived which—(a) is received 48 or is deemed to be received 48 in India in such year by oron behalf of such person ; or(b) accrues 48 or arises 48 or is deemed 48 to accrue or arise to him in Indiaduring such year ; or(c) accrues 48 or arises 48 to him outside India during such year :Provided that, in the case of a person not ordinarily resident in Indiawithin the meaning of sub-section (6)* of section 6, the income whichaccrues or arises to him outside India shall not be so included unlessit is derived from a business controlled in or a profession set up inIndia.(2) Subject to 47 the provisions of this Act, the total income 47 of any previous yearof a person who is a non-resident includes all income from whatever sourcederived which—(a) is received 48 or is deemed to be received 48 in India in such year by oron behalf of such person ; or(b) accrues 48 or arises 48 or is deemed to accrue or arise to him in Indiaduring such year.Explanation 1.—Income accruing or arising outside India shall not be deemed tobe received 48 in India within the meaning of this section by reason only of the factthat it is taken into account in a balance sheet prepared in India.43. For the meaning of the expressions “in accordance with, and subject to the provisions of,this Act” and “total income”, see Taxmann’s Direct Taxes Manual, Vol. 3.44. “or previous years, as the case may be,” omitted by the Direct Tax Laws (Amendment) Act,1987, w.e.f. 1-4-1989.45. See also Circular No. 369, dated 17-9-1983. For details, see Taxmann’s Master Guide toIncome-tax Act.46. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.47. For the meaning of the terms/expressions “subject to” and “total income”, see Taxmann’sDirect Taxes Manual, Vol. 3.48. For the meaning of the terms/expressions “is received”, “deemed to be received”, “accruesor arises”, “accrued or arisen” and “deemed to have accrued”, see Taxmann’s Direct TaxesManual, Vol. 3.*Should be read as ‘clause (6)’.