**Income Inclusion in Domestic**

**Introduction:**
In the context of taxation, the concept of domestic income refers to the income earned within the borders of a particular country. In most cases, a country's tax laws require its residents to pay taxes on their worldwide income, while non-residents are typically only subject to taxation on income earned within the country's borders. However, there are certain situations where income earned by a resident of one country in another country may not be included in the resident's domestic income.

**Explanation:**

**1. Territorial Tax System:**
India follows a territorial tax system, which means that individuals are liable to pay taxes on income that is earned or accrued in India. Any income earned outside the country is not subject to taxation, except for certain specified cases. Therefore, if a resident of India earns rental income from a building located in Singapore, it would not be included in their domestic income in India.

**2. Taxation Principle:**
The principle of taxation is generally based on the source of income. In this case, the source of income is the rental property located in Singapore. Since the property is situated outside India, the income generated from it is considered to be sourced in Singapore and falls under the jurisdiction of Singapore's tax laws. As a result, the rental income earned by an Indian resident in Singapore is not included in their domestic income in India.

**3. Double Taxation Avoidance Agreements (DTAA):**
India has entered into Double Taxation Avoidance Agreements (DTAA) with several countries, including Singapore. These agreements are aimed at eliminating or reducing the instances of double taxation on income earned by residents of one country in another country. DTAA provides rules for allocating taxing rights between the countries involved, ensuring that the income is not taxed twice. Therefore, under the provisions of the DTAA between India and Singapore, the rental income earned by an Indian resident in Singapore would be taxable only in Singapore and not in India.

**Conclusion:**
In summary, when a resident of India earns rental income from a building located in Singapore, it is not included in their domestic income in India. This is due to India's territorial tax system, the principle of taxation based on the source of income, and the provisions of the Double Taxation Avoidance Agreement between India and Singapore. It is important for individuals to understand the tax laws and agreements between countries to ensure compliance and avoid any potential issues related to double taxation.

Domestic income includes only that income which is earned within the physical boundaries of a country. So the income earned by Indian resident in Singapore is not included in domestic income. It can be a part of national income.