Scope of Total Income

Section 5 provides the scope of total income in terms of the residential status of the assessee because the incidence of tax on any person depends upon his residential status. The scope of total income of an assessee depends upon the following three important considerations:

1. the residential status of the assessee;
2. the place of accrual or receipt of income, whether actual or deemed; and
3. the point of time at which the income had accrued to or was received by or on  behalf of the assessee.

The ambit of total income of the three classes of assessees would be as follows:

Scope of total Income	Resident  and Ordinarily Resident	Resident  but  not Ordinarily  Resident	Non-Resident
Income received or deemed to be received   in   India during the previous year	Yes	Yes	Yes
Income  accruing or arising or deeming  to   accrue  or arise in India during the previous year	Yes	Yes	Yes
Income accruing or arising outside India during the previous year	Yes,  even  if such income is not received   or brought into India during   the previous year	Yes, but only if such income  is derived from a business controlled in or profession set up in India; Otherwise, No.	No
Past Untaxed Foreign income brought to India / Agricultural Income from India/ Share of Income from Indian  partnership firm / Dividend from an Indian Company/ Gift from a relative.	No	No	No

Ref: 

ICAI 

ICSI 

Income Tax Law and Practice by Gaur and Narang.