Income Tax Act, 2025
Section 8: Ins. by Act 33 of 2009, s. 3 (w.e.f. 12009).
8. Ins. by Act 33 of 2009, s. 3 (w.e.f. 12009).
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1[Explanation.—For the purposes of this clause, the expression “scheduled bank” shall have the
meaning assigned to it in clause (ii) of the Explanation to sub-clause (c) of clause (viia) of
sub-section (1) of section 36.]]
2[3. “Previous year” defined.—For the purposes of this Act, “previous year” means the financial
year immediately preceding the assessment year:
Provided that, in the case of a business or profession newly set up, or a source of income newly
coming into existence, in the said financial year, the previous year shall be the period beginning with the
date of setting up of the business or profession or, as the case may be, the date on which the source of
income newly comes into existence and ending with the said financial year.]
CHAPTER II
BASIS OF CHARGE
4. Charge of income-tax.—(1) Where any Central Act enacts that income-tax shall be charged for
any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that
year in accordance with, and 3[subject to the provisions (including provisions for the levy of additional
income-tax) of, this Act] in respect of the total income of the previous year 4***of every person:
Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of
the income of a period other than the previous year, income-tax shall be charged accordingly.
(2) In respect of income chargeable under sub-section (1), income-tax shall be deducted at the source
or paid in advance, where it is so deductible or payable under any provision of this Act.
5. Scope of total income.—(1) Subject to the provisions of this Act, the total income of any previous
year of a person who is a resident includes all income from whatever source derived which—
(a) is received or is deemed to be received in India in such year by or on behalf of such person;
or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year; or
(c) accrues or arises to him outside India during such year:
Provided that, in the case of a person not ordinarily resident in India within the meaning of
sub-section (6) of section 6, the income which accrues or arises to him outside India shall not be so
included unless it is derived from a business controlled in or a profession set up in India.
(2) Subject to the provisions of this Act, the total income of any previous year of a person who is a
non-resident includes all income from whatever source derived which—
(a) is received or is deemed to be received in India in such year by or on behalf of such
person; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year.
Explanation 1.—Income accruing or arising outside India shall not be deemed to be received in India
within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet
prepared in India.
Explanation 2.—For the removal of doubts, it is hereby declared that income which has been
included in the total income of a person on the basis that it has accrued or arisen or is deemed to have
accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be
received by him in India.
of the Explanation to sub-clause
of clause
of
sub-section
of section 36.]]
2[3. “Previous year” defined.—For the purposes of this Act, “previous year” means the financial
year immediately preceding the assessment year:
Provided that, in the case of a business or profession newly set up, or a source of income newly
coming into existence, in the said financial year, the previous year shall be the period beginning with the
date of setting up of the business or profession or, as the case may be, the date on which the source of
income newly comes into existence and ending with the said financial year.]
CHAPTER II
BASIS OF CHARGE
4. Charge of income-tax.—
Where any Central Act enacts that income-tax shall be charged for
any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that
year in accordance with, and 3[subject to the provisions (including provisions for the levy of additional
income-tax) of, this Act] in respect of the total income of the previous year 4***of every person:
Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of
the income of a period other than the previous year, income-tax shall be charged accordingly.
In respect of income chargeable under sub-section
Subject to the provisions of this Act, the total income of any previous
year of a person who is a resident includes all income from whatever source derived which—
is received or is deemed to be received in India in such year by or on behalf of such person;
or
accrues or arises or is deemed to accrue or arise to him in India during such year; or
accrues or arises to him outside India during such year:
Provided that, in the case of a person not ordinarily resident in India within the meaning of
sub-section
of section 6, the income which accrues or arises to him outside India shall not be so
included unless it is derived from a business controlled in or a profession set up in India.
Subject to the provisions of this Act, the total income of any previous year of a person who is a
non-resident includes all income from whatever source derived which—
is received or is deemed to be received in India in such year by or on behalf of such
person; or
accrues or arises or is deemed to accrue or arise to him in India during such year.
Explanation 1.—Income accruing or arising outside India shall not be deemed to be received in India
within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet
prepared in India.
Explanation 2.—For the removal of doubts, it is hereby declared that income which has been
included in the total income of a person on the basis that it has accrued or arisen or is deemed to have
accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be
received by him in India.