TaxTMI 
TaxTMI 
30 Sep 2026 
Abbreviation used :
ITA 1961 or 61 Act - The income-tax Act, 1961
ITA 2025 or 25 Act - The income-tax Act, 2025
ITR 1962 or 62 Rules - Income Tax Rules 1962
ITR 2026 Or Rules 2026- Income-tax rules 2026
TY- Tax year in ITA 2025
PY - Previous year in ITA 1961.
The provisions are reproduced below in table with highlights added by learned author and his remarks are also given for observations and remarks:
| Remarks | ||
| 5. Scope of total income. | Scope of total Income. | Similar -see note below table |
| (1) Subject to the provisions of this Act, the total income of any tax year of a person, who is a resident, includes all income from whatever source derived, which- | 5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which- | Similar in substance. Tax year is used in place of previous year. TY vis a vis PY These are as per changed style of drafting.
|
| (a) is received or deemed to be received in India in that year by or on behalf of such person; | (a) is received or is deemed to be received in India in such year by or on behalf of such person ; or | Similar
|
| (b) accrues or arises, or is deemed to accrue or arise, to such person in India in that year; or | (b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or | Similar |
| (c) accrues or arises to such person outside India in that year, but when such person is "not ordinarily resident" in India under section 6(13), such income shall be included only when it is derived from a business controlled in or a profession set up in India.
| (c) accrues or arises to him outside India during such year : Provided that, in the case of a person not ordinarily resident in India within the meaning of sub-section (6) of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India. | Similar except relevant provisions are referred. In case of business requirement is control in India whereas in case of profession requirement is set up in India, control is not relevant.
|
| (2) Subject to the provisions of this Act, the total income of a tax year of a person, who is a non-resident, includes all income from whatever source derived, which- | (2) Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which- | Similar
|
| (a) is received or deemed to be received in India in that year by or on behalf of such person; or | (a) is received or is deemed to be received in India in such year by or on behalf of such person ; or | Similar
|
| (b) accrues or arises, or is deemed to accrue or arise, to such person in India in that year. | (b) accrues or arises or is deemed to accrue or arise to him in India during such year.
| Similar
|
| (3) Income accruing or arising outside India shall not be deemed to be received in India under this section by reason only of the fact that it is taken into account in a balance sheet prepared in India.
| Explanation1. Income accruing or arising outside India shall not be deemed to be received in India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India. | Similar in substance. In ITA 2025 it is by way of a sub-section, as against an Explanation in ITA 1961
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| (4) If an income has been included in a person's total income on the basis that it- (a) has accrued or arisen; or (b) is deemed to have accrued or arisen, to such person, it shall not again be included on the basis that it is received or deemed to be received by that person in India. | Explanation 2. For the removal of doubts, it is hereby declared that income which has been included in the total income of a person on the basis that it has accrued or arisen or is deemed to have accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be received by him in India. | Similar in substance. In ITA 2025 it is by way of a sub-section, as against an Explanation in ITA 1961
|
Heading of section: presentation difference is due to change in style. In ITA 2025 section number is mentioned in heading of section whereas in ITA 1961 it is at beginning of section. In view of author this should not make a difference. However, litigant brains can be applied to make out a difference and it is to be seen in future.
As analysed above the provisions in two enactments are intended to be on same and similar lines except some changes caused due to changes in drafting policy and style adopted in ITA 2025.
The crucial aspects are meaning of 'resident', ' non- resident', 'not ordinarily resident', Control in India and control out of India etc. as contained in other provisions like sections 2 for relevant meanings, section 6 about residence, section 9 about income deemed to accrue or arise in India etc. of ITA 2025 and corresponding provisions of ITA 1961.
It is expected that underlying Rules in circulars and judgments under ITA 1961 will be applicable and followed in ITA 2025 also.
Changes in other related provisions of ITA 1961 and precedence thereunder from time to time will have to be considered while following them in their application under ITA 2025 when provisions are same, and in case of changes different view is to be explored.