Residence-based taxation: residents taxed on worldwide income; non-residents taxed on India-sourced receipts or accruals. Residents are taxed on total income including receipts, deemed receipts, and accruals arising in India and abroad, subject to an exception for not ordinarily resident persons whose foreign accruals are taxed only if derived from a business controlled in or a profession set up in India. Non-residents are taxed only on income received or deemed received in India and income accruing or arising or deemed to accrue or arise in India. Explanations exclude balance sheet treatment from constituting receipt in India and prohibit double inclusion of the same income under accrual and receipt bases.