Scope of total income determines resident worldwide taxability; non-residents taxed on India source income and receipts in India. The provision defines total income for residents to include income received or deemed received in India, income accruing or arising or deemed to accrue or arise in India, and income accruing or arising outside India subject to a limitation for persons who are not ordinarily resident (included only if derived from a business controlled in India or a profession set up in India). For non-residents, total income includes income received or deemed received in India and income accruing or arising or deemed to accrue or arise in India. Foreign income is not deemed received merely because it appears in an Indian balance sheet, and income once included on an accrual basis is not again included on a receipt basis.