Scheme of Taxation?
The scheme of taxability in India is linked to persons residential status and the scope of total income. A persons residential status would determine the scope of total income falling within the net of Indian taxation. By scope of total income is meant the territorial extent to which the Law can extend its arm to bring a person within the tax net. This is intricately connected with residential status. The scope of total income as contemplated by Sec.5 of Income Tax Act is: Income received or deemed to be received in India. – Income which accrues or arises or is deemed to accrue or arise to him in India. – Income which accrues or arises to him outside India during the year. – Income deemed to accrue or arise in India : Sec. 9 of the ITA contains various categories of income, which are deemed to accrue or arise in India. An important situation where income is deemed to accrue or arise in India is where the income accrues or arises from any “Business connection or from any property situat
