Under section 5 of the Income-tax Act, 2025, income which accrues or arises outside India and is…

Under section 5(1) of the Income-tax Act, 2025 (formerly s.5 of the Income-tax Act, 1961), the total income of a resident includes all income that accrues or arises to him outside India, so such income is taxable in the hands of an ordinarily resident person (c). For a person who is "not ordinarily resident" under section 6(13), section 5(1)(c) includes foreign income only when it is derived from a business controlled in or a profession set up in India, which is the case here, so it is also taxable in the hands of a not ordinarily resident person (d).

Under section 5(2), a non-resident is taxed only on income received or deemed to be received in India, or accruing or arising or deemed to accrue or arise in India, so (e) is excluded. The scope of total income depends on residential status under section 6, not on citizenship or domicile as such; a citizen or domiciled person who is a non-resident is not taxed on this income, so (a) and (b) are wrong. The correct answer is c and d only.