Section 5

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This discussion clarifies Section 5 of the Income Tax Act concerning income earned outside India but received within the country. For residents, income accruing or arising outside India is taxable in India, regardless of where it was received. This principle applies to a resident's global income.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)
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01 January 2020 Hii ,

i have one query about section 9& 5 of income tax act.,i have client Alka Yagnik (singer) who is resident and she render service out of India and money received in India please suggest me is it income accrue or arise outside India and but received in India and what is meaning?it is urgent

Gokul Sharma

Gokul Sharma (Expert)
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01 January 2020 Service performed outside india so income accrues outside india ......but since she is resident so income taxable in india as per income tax act

swasti

swasti (Expert)
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02 January 2020 Agree with Mr. Gokul. Just to add - Both Residents as well as Non-Residents are taxable for income accrued (or deemed to accrue) as well as income received (or deemed to be received) in India. However, if a person is Resident in India, he/she is also taxable for income accrued or arises to him/her outside India. If income is accrued or arises outside India and is not received in India, it is not taxable in the case of Non-Resident only. The global income of a Resident is taxable in India, wherever it accrues or is earned.

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