ITA 2025 · Chapter II
Basis of Charge
Sections in this chapter
- 4
Charge of Income-tax
STATUTORY ARCHITECTURE Section 4 is the substantive charging provision. Its operation depends on three pillars — (a) a Central Act (typically the Finance Act of the relevant year) prescribing rates, (b) the substantive Income-tax Act,…
- 5
Scope of Total Income
STATUTORY ARCHITECTURE Section 5 establishes the residence-based scope of taxation. India follows the residence principle (worldwide taxation for residents) tempered with the source principle (Indian-source taxation for non-residents).…
- 6
Residence in India
STATUTORY ARCHITECTURE — Residence Tests for Individual An individual is RESIDENT in India in any tax year if EITHER — (a) he is in India for 182 days or more in that tax year, OR (c) he is in India for 60 days or more in that tax year…
- 7
Income Deemed Received
STATUTORY ARCHITECTURE Section 7 is a deeming provision — its purpose is to plug timing gaps between accrual and actual receipt. Without s. 7 , certain accumulations would escape taxation by virtue of not having been physically received…
- 8
Dividend Income
STATUTORY ARCHITECTURE — Deemed Dividend Categories Section 8 read with s. 2 'dividend' definition catches the following constructive distributions: (a) Distribution of accumulated profits to shareholders involving release of company…
- 9
Income Deemed to Accrue or Arise in India
Section 9 is the cornerstone of cross-border income taxation in India -- the substantive equivalent of 1961 s. 9 in its entirety with all post-1961 accretions including the FA 2012 retrospective overriding of Vodafone (indirect transfer),…
- 10
Portuguese Civil Code Apportionment
STATUTORY ARCHITECTURE Section 10 is a Goa/Daman/Diu/Dadra-Nagar-Haveli specific provision. The Portuguese Civil Code's COMMUNIAO DOS BENS regime treats both spouses as joint owners of all property acquired during the marriage. The…
CHAPTER II — BASIS OF CHARGE | INDEX OF SECTIONS
Chapter II of the Income-tax Act, 2025 contains 7 sections (ss. 4 to 10) — the substantive charging architecture, scope of total income, residence rules, deeming provisions for receipt and accrual, and the Portuguese Civil Code apportionment rule for spouses in Goa / Daman / Diu / Dadra & Nagar Haveli. Each section in this chapter is published as a separate file inside this folder. This Index file lists the sections, their marginal headings, the corresponding 1961 Act sections, and a brief note on each.