This document discusses the scope of total income in India based on an individual's residential status. It outlines three important considerations for the incidence of tax: the residential status of the assessee, the place of accrual or receipt of income, and the point of time at which the income was accrued or received. It then provides details on the different types of income that are included in total income for residents and ordinarily residents, residents but not ordinarily residents, and non-residents. Examples are also given to illustrate how total income would be calculated for each residential category.

1. Scope of Total Income
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100

2. Scope of Total Income
Dr. NGPASC
COIMBATORE | INDIA
The residential status of the
assessee
the place of accrual or receipt of
income, whether actual or deemed
the point of time at which the income had
accrued to or was received by or on behalf of
the assessee
Incidence
of tax
3 Important
Considerations

3. Dr. NGPASC
COIMBATORE | INDIA
Scope of Total Income
Scope of total Income
Resident and
Ordinarily Resident
(R)
Resident but Not
Ordinarily
Resident (NOR)
Non-Resident
(NR)
Income received or deemed to be
received in India during the
previous year
Yes Yes Yes
Income earned in India whether
received, paid in India or outside
India
Yes Yes Yes

4. Dr. NGPASC
COIMBATORE | INDIA
Scope of Total Income
Scope of total Income
Resident and
Ordinarily Resident (R)
Resident but Not
Ordinarily Resident
(NOR)
Non-
Resident
(NR)
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
No No
Income is derived from a business
controlled in or profession set
up in India
Yes Yes No
Income is derived from a business
controlled or profession set up
outside India
Yes No No

5. Dr. NGPASC
COIMBATORE | INDIA
Scope of Total Income
Scope of total Income
Resident and
Ordinarily Resident
(R)
Resident but Not
Ordinarily
Resident (NOR)
Non-
Resident
(NR)
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

6. Example 1
Dr. NGPASC
COIMBATORE | INDIA
From the following particulars of income
furnished by Mr. Anirudh pertaining to the
year ended 31.3.2020, compute the total
income for the assessment year 2020-21, if
he is:
a) Resident and ordinary resident;
b) Resident but not ordinarily resident;
c) Non-resident

7. Dr. NGPASC
COIMBATORE | INDIA
PARTICULARS
`
(a) Short term capital gains on sale of shares of
an Indian Company received in Germany
15,000
(b) Dividend from a Japanese Company
received in Japan
10,000
(c) Rent from property in London deposited in a
bank in London, later on remitted to India
through approved banking channels
75,000
(d) Dividend from RP Ltd., an Indian Company 6,000
(e) Agricultural income from land in Gujarat 25,000

8. 8