Comparison of Section 5 "Scope of total income" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....n date: Not stated in the document. Background & Scope Statutory hooks: Clause 5 (Scope of total income) operates within the Income Tax Bill, 2025 and functions as the primary provision establishing the basis of charge for income tax. The provision delineates what constitutes "total income" for a tax year for persons who are residents and persons who are non-residents. Definitions or explanations: The clause refers to the concept "not ordinarily resident" u/s 6(13), but the Bill's text of Clause 5 does not contain a definition of residency or "not ordinarily resident" itself; therefore, the residency criteria are governed by section 6 (text of which is Not stated in the document). Statutory Provision Mode Text & Scope Clause 5(1) ....

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....ncluded on the basis that it is received or deemed to be received by the person in India. Interpretation The Bill uses the inclusive phrase "all income from whatever source derived," signalling a wide territorial and source-neutral approach subject to the enumerated receipt/receipt-in-India and accrual/assignment tests. The clause establishes three distinct tests for residents (receipt in India; accrual/arising in India; accrual/arising outside India with a specific limitation for not-ordinarily-resident persons) and two tests for non-residents (receipt in India; accrual/arising in India). The text itself gives primacy to legislative criteria of receipt and accrual, and incorporates deeming language ("deemed to be received," "deemed to ac....

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....language that implies interaction with other statutory deeming provisions elsewhere in the Bill/Act (for example, provisions that deem receipt or accrual in particular circumstances), but those specific provisions or rules are Not stated in the document. The clause does not reference tax treaties, exemptions, or other sections that normally interact with basis-of-charge rules; those interactions are Not stated in the document. Differences between Section 5 (Income-tax Act, 2025 [As Passed]) and Clause 5 (Income Tax Bill, 2025 - Old Version) * Textual differences: The two texts are substantively identical in their operative provisions. Minor stylistic differences appear: the As Passed version uses the phrase "such person" in sub-clauses....