Under Section 5 ITA 1961, the SCOPE OF TOTAL INCOME of a RESIDENT and ORDINARILY RESIDENT (ROR) includes:
Answer & Solution
Correct answer: C.
1. Section 5(1) Income Tax Act 1961: Scope of total income for ROR includes (a) income received or deemed received in India; (b) income accruing or arising in India; (c) income accruing or arising OUTSIDE India.
2. RNOR: only (a) + (b) — global income excluded unless from business controlled in India.
3. NON-RESIDENT (NR): only (a) + (b).
4. The scope expands based on residential status — ROR taxed on worldwide income, NR only on India-sourced income.
5. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 5_
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