Under section 5 of the Income-tax Act, 2025, income that accrues and is received outside India, and is…

Section 5(1)(c) of the Income-tax Act, 2025 includes in a resident's total income income accruing or arising outside India, but for a person who is not ordinarily resident under section 6(13) only if it is derived from a business controlled in or a profession set up in India. Section 5(2) taxes a non-resident only on income received, or accruing or arising, in India. Such foreign income is therefore taxed only in the hands of "a resident who is ordinarily resident in India". This corresponds to section 5 of the repealed Income-tax Act, 1961.