MANAGEMENT

Detailed explanation-1: -In case of resident taxpayer all his income would be taxable in India, irrespective of the fact that income is earned or has accrued to taxpayer outside India. However, in case of non-resident all income which accrues or arises outside India would not be taxable in India.

Detailed explanation-2: -Even any charges which are collected as payable for a service rendered in India is regarded as income earned in India. 2). If a government employee or citizen of India is reimbursed by the Government for rendering any service outside India then it is deemed as accrued in India.

Detailed explanation-3: -The foreign income i.e. income accruing or arising outside India in any financial year is liable to income-tax in that year even if it is not received or brought into India. There is no escape from liability to income-tax even if the remittance of income is restricted by the foreign country.

Detailed explanation-4: –Where a business is carried on in India through a person referred to in clause (a) or clause (b) or clause (c) of Explanation 2, only so much of income as is attributable to the operations carried out in India shall be deemed to accrue or arise in India.

Detailed explanation-5: -According to Indian taxation laws (Income Tax Act, 1961), the income of a person is taxed in India if it is accrued or has been received in India. However, there is an exception; Section 9 of the Income Tax Act deals with income deemed to accrue or arise in India.