Scope Of Total Income/Incidence Of Tax

[sunandaC]

Total income of an assesses cannot be computed unless we know his residential status in India during the previous year.

Residential status is to be determined for:

Previous year

Assessment year

Accounting year

Total income of a person is determined on the basis of his:

Residential status in India

Citizenship in India

None of the above

Both of the above


Any income which is received or is deemed to be received in India in the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise in India during the relevant previous year;

 any income which accrues or arises outside India during the relevant previous year.

In the case of a Resident but not Ordinarily Resident in India (In the case of individuals and HUF only) [Section 5(1) and its proviso]:

The following incomes from whatever source derived form part of Total Income in the case of resident but not ordinarily resident in India:

any income which is received or is deemed to be received in India in the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise to him during the relevant previous year;

 any income which accrues or arises to him outside India during the relevant previous year if it is derived from a business controlled in or a profession set up in India.

In the case of Non-Resident [Section 5(2)]: The following incomes from whatever source derived form part of Total Income in the case of Non-Residents in India:

 any income which is received or is deemed to be received in India during the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise to him in India during the relevant previous year.

 

[Business-education]

Hello guys, well, sunanda you have played it very cool and your information is just impeccable. I would like to add definition to it for better understanding.

Tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall" upon the group that ultimately bears the burden of, or ultimately has to pay, the tax.

Definition of Total Income

 

[rosemarry2]

Total income of an assesses cannot be computed unless we know his residential status in India during the previous year.

Residential status is to be determined for:

Previous year

Assessment year

Accounting year

Total income of a person is determined on the basis of his:

Residential status in India

Citizenship in India

None of the above

Both of the above


Any income which is received or is deemed to be received in India in the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise in India during the relevant previous year;

 any income which accrues or arises outside India during the relevant previous year.

In the case of a Resident but not Ordinarily Resident in India (In the case of individuals and HUF only) [Section 5(1) and its proviso]:

The following incomes from whatever source derived form part of Total Income in the case of resident but not ordinarily resident in India:

any income which is received or is deemed to be received in India in the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise to him during the relevant previous year;

 any income which accrues or arises to him outside India during the relevant previous year if it is derived from a business controlled in or a profession set up in India.

In the case of Non-Resident [Section 5(2)]: The following incomes from whatever source derived form part of Total Income in the case of Non-Residents in India:

 any income which is received or is deemed to be received in India during the relevant previous year by or on behalf of such person;

 any income which accrues or arises or is deemed to accrue or arise to him in India during the relevant previous year.

hey buddy,

I am also uploading a document which will give more detailed explanation on Notes on Residence and Scope of Total Income.