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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..... xable 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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..... e 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 o .....

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..... ith international taxation principles Conclusion The proposed Clause 5 represents an evolution rather than revolution in defining the scope of total income. While maintaining the fundamental principles, it introduces structural improvements and clarity enhancements that should facilitate better compliance and administration.   Full Text: Clause 5
TMI Short Notes , Experts comment, op .....

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