# Scope of Total Income [Section 5]
Residential status maps onto what is taxed. Section 5 sets out the incidence of tax for ROR, RNOR and NR.
## The Taxability Grid
| Source / Receipt of Income | ROR | RNOR | NR |
|---|---|---|---|
| 1. Income received or deemed received in India (Receipt Principle) | Taxable | Taxable | Taxable |
| 2. Income accruing/arising or deemed to accrue/arise in India (Source Principle) | Taxable | Taxable | Taxable |
| 3. Income from a business controlled / profession set up in India, even if it accrues outside India | Taxable | Taxable | Non-taxable |
| 4. Income accruing/arising AND received both outside India | Taxable | Non-taxable | Non-taxable |
## Summary
- ROR — Global income is taxable.
- RNOR & NR — Taxable only if either source or receipt is in India.
- Extra for RNOR — Even if both source and receipt are outside India, it is taxable if it comes from a business controlled from / profession set up in India.
## Key Definitions
Receipt of Income: Refers only to the first occasion when the recipient gets the money under their control. Subsequent remittance or transmission of that amount does not constitute receipt of income.
Accrue vs. Due:
- Accrue = the right to receive income (income accrues when the right becomes vested in the assessee).
- Due = the right to enforce payment.
- On Government securities, interest arises day-to-day during the holding period but becomes due on the specified dates.
## Explanations to Section 5
- Income once taxed on accrual cannot be taxed again in the same/subsequent year on actual or deemed receipt.
- Income accruing outside India is not deemed received in India merely because it appears in an Indian balance sheet.
## Clarification — Non-Resident Seafarer
A non-resident seafarer's salary for services performed outside India on a foreign-going ship (Indian or foreign flag) is not taxable in India if received directly into an NRE account in an Indian bank.