Scope of Total Income as applicable to Non Resident
Scope of Total Income as applicable to Non Resident
Scope of total income is laid down in Section 5 (of Income Tax Act, 1961). Sub-Section (1) deals with income to a person who is resident in India while Sub-Section (2) deals with income of a person who is a non-resident.
Today I will discuss about sub-section(2) of the Act i.e., provisions dealing with Non Resident.
As per Sec5(2) (of Income Tax Act, 1961) following income will be included in T.I of Non Resident
#A) Income accrued or deemed to accrue in India.
#B) Income received or deemed to be received in India.
#A)Meaning of Accrual:
Accrual here means=>Place at which income is generated=>Place at which services are rendered.
Thus if services are rendered o/s India, then the remuneration received will not be included in total income of Non Resident subject to…….
#B)Meaning of Received:
Received means first receipt. If first receipt is in bank account in India then such income will be deemed to be received in India. So always remember to receive salary in a bank account maintained o/s India and then remit such salary to Indian Bank Account.
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