A Comparative Analysis of Scope of Total Income: Section 5 of Income-tax Act, 1961 and Clause 5 of Income Tax Bill, 2025

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....able and for whom. This article analyzes the proposed changes in Clause 5 of the Income Tax Bill, 2025, comparing it with the existing Section 5 of the Income-tax Act, 1961, highlighting key modifications and their implications. Objective and Purpose Both provisions aim to define the scope of taxable income for residents and non-residents in India. The legislative intent appears to maintain the ....

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.... modification in treatment of foreign income for "not ordinarily resident" persons: * 1961 Act: Addressed through proviso * 2025 Bill: Integrated into main clause with direct reference to Section 6(13) 3. Non-Resident Taxation [Section 5(2)] * Framework remains largely unchanged * Linguistic refinements for better clarity * Consistent use of terminology across sections 4. Prevention of....