Scope of total income.

²³ 5.  ²⁴(1) Subject to ²⁵ the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which—

         (a )  is received ²⁶ or is deemed to be received ²⁶ in India in such year by or on behalf of such person ; or

         (b )  accrues ²⁶ or arises ²⁶ or is deemed ²⁶ to accrue or arise to him in India during such year ; or

          (c )  accrues ²⁶ or arises ²⁶ 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 to ²⁶ the provisions of this Act, the total income ²⁶ of any previous year of a person who is a non-resident includes all income from whatever source derived which—

         (a )  is received ²⁶ or is deemed to be received ²⁶ in India in such year by or on behalf of such person ; or

         (b )  accrues ²⁶ or arises ²⁶ 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 received ²⁶ 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 accrued ²⁶ or arisen ²⁶ or is deemed to have accrued ²⁶ or arisen ²⁶ to him shall not again be so included on the basis that it is received or deemed to be received by him in India.