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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

Extract

..... r journals, no income shall be deemed to accrue or arise in India to him through or from activities which are confined to the collection of news and views in India for transmission out of India;] 5[(d) in the case of a non-resident, being- (1) an individual who is not a citizen of India ; or (2) a firm which does not have any partner who is a citizen of India or who is resident in India ; or (3) a company which does not have any shareholder who is a citizen of India or who is resident in India, no income shall be deemed to accrue or arise in India to such individual, firm or company through or from operationswhich are confined to the shooting of any cinematograph film in India.] 23[ (e) in the case of a foreign company engaged in the business of mining of diamonds, no income shall be deemed to accrue or arise in India to it through or from the activities which are confined to the display of uncut and unassorted diamond in any special zone notified by the Central Government in the Official Gazette in this behalf. ] 6[Explanation 2.-For the removal of doubts, it is hereby declared that "business connection" shall include any business activity carried out through a person wh .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... eeds such amount as may be prescribed; or (b) systematic and continuous soliciting of business activities or engaging in interaction with such number of users in India, as may be prescribed: Provided that the transactions or activities shall constitute significant economic presence in India, whether or not- (i) the agreement for such transactions or activities is entered in India; or (ii) the non-resident has a residence or place of business in India; or (iii) the non-resident renders services in India: Provided further that only so much of income as is attributable to the transactions or activities referred to in clause (a) or clause (b) shall be deemed to accrue or arise in India.]] Explanation 3.-Where a business is carried on in India through a person referred to in clause (a) or clause (b) or clause (c) of Explanation 2, only so much of income as is attributable to the operations carried out in India shall be deemed to accrue or arise in India;] 32[Explanation 3A.-For the removal of doubts, it is hereby declared that the income attributable to the operations carried out in India, as referred to in Explanation 1, shall include income from- (i) such advertisement which targets a .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... rs) Regulations, 2019, made under the Securities and Exchange Board of India Act, 1992.” (15 of 1992.);] 21[Explanation 6.-For the purposes of this clause, it is hereby declared that- (a) the share or interest, referred to in Explanation 5, shall be deemed to derive its value substantially from the assets (whether tangible or intangible) located in India, if, on the specified date, the value of such assets- (i) exceeds the amount of ten crore rupees; and (ii) represents at least fifty per cent. of the value of all the assets owned by the company or entity, as the case may be; (b) the value of an asset shall be the fair market value as on the specified date, of such asset without reduction of liabilities, if any, in respect of the asset, determined in such manner as may be prescribed; (c) “accounting period” means each period of twelve months ending with the 31st day of March: Provided that where a company or an entity, referred to in Explanation 5, regularly adopts a period of twelve months ending on a day other than the 31st day of March for the purpose of- (i) complying with the provisions of the tax laws of the territory, of which it is a resident, for tax purp .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... h company or entity which would entitle him to the right of management or control in the company or entity that directly owns the assets situated in India, nor holds such percentage of voting power or share capital or interest in such company or entity which results in holding of (either individually or along with associated enterprises) a voting power or share capital or interest exceeding five per cent. of the total voting power or total share capital or total interest, as the case may be, of the company or entity that directly owns the assets situated in India; (b) in a case where all the assets owned, directly or indirectly, by a company or, as the case may be, an entity referred to in the Explanation 5, are not located in India, the income of the non-resident transferor, from transfer outside India of a share of, or interest in, such company or entity, deemed to accrue or arise in India under this clause, shall be only such part of the income as is reasonably attributable to assets located in India and determined in such manner as may be prescribed; (c) “associated enterprise” shall have the meaning assigned to it in section 92A;] (ii) income which falls under the .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... n outside India or for the purposes of making or earning any income from any source outside India ; or (c) a person who is a non-resident, where the royalty is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person in India or for the purposes of making or earning any income from any source in India : Provided that nothing contained in this clause shall apply in relation to so much of the income by way of royalty as consists of lump sum consideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process or trade mark or similar property, if such income is payable in pursuance of an agreement made before the 1st day of April, 1976, and the agreement is approved by the Central Government : 9[Provided further that nothing contained in this clause shall apply in relation to so much of the income by way of royalty as consists of lump sum payment made by a person, who is a resident, for the transfer of all or any rights (incl .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... n section 44BB;] (v) the transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting 36[****] ; or (vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to 13[(iv), (iva) and] (v). 14[Explanation 3.-For the purposes of this clause, "computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customized electronic data;] 20[Explanation 4.-For the removal of doubts, it is hereby clarified that the transfer of all or any rights in respect of any right, property or information includes and has always included transfer of all or any right for use or right to use a computer software (including granting of a licence) irrespective of the medium through which such right is transferred. Explanation 5.-For the removal of doubts, it is hereby clarified that the royalty includes and has always included consideration in respect of any righ .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... the 5th day of July, 2019 by a person resident in India to a non-resident, not being a company, or to a foreign company.] (2) Notwithstanding anything contained in sub-section (1), any pension payable outside India to a person residing permanently outside India shall not be deemed to accrue or arise in India, if the pension is payable to a person referred to in article 314 of the Constitution or to a person who, having been appointed before the 15th day of August, 1947, to be a Judge of the Federal Court or of a High Court within the meaning of the Government of India Act, 1935, continues to serve on or after the commencement of the Constitution as a Judge in India. 18[Explanation.-For the removal of doubts, it is hereby declared that for the purposes of this section, income of a non-resident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub-section (1) and shall be included in the total income of the nonresident, whether or not,- (i) the non-resident has a residence or place of business or business connection in India; or (ii) the non-resident has rendered services in India.] ******************** Notes :- 1. Words "or through o .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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..... of sub-section (1), such income shall be included in the total income of the non-resident, whether or not the non-resident has a residence or place of business or business connection in India.] 19. Inserted vide Finance Act, 2012, (w.e.f. 1-4-1962). 20. Inserted vide Finance Act, 2012, (w.e.f. 1-6-1976). 21. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 22. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 23. Inserted vide THE FIvNANCE ACT, 2016 w.e.f. 1st day of April, 2016 24. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2012 25. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2015 26. Substituted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2019, before it was read as, “(a) has and habitually exercises in India, an authority to conclude contracts on behalf of the non-resident, unless his activities are limited to the purchase of goods or merchandise for the non-resident; or” 27. Inserted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2019 28. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 29. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2022 before it was rea .....

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Section 9 - Income deemed to accrue or arise in India - Income-tax Act, 1961

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  1. Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014
  2. Securities and Exchange Board of India Act, 1992
  3. Section 9A - Certain activities not to constitute business connection in India
  4. Section 92F - Definitions of certain terms relevant to computation of arms length price, etc
  5. Section 92A - Meaning of associated enterprise
  6. Section 9 - Act not to apply in certain cases
  7. Section 47 - Transactions not regarded as transfer
  8. Section 44DA - Special provision for computing income by way of royalties, etc., in case of non-residents
  9. Section 44D - Special provisions for computing income by way of royalties, etc., in the case of foreign companies
  10. Section 44BB - Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
  11. Section 40 - Amounts not deductible
  12. Section 285A - Furnishing of information or documents by an Indian concern in certain cases
  13. Section 194J - Fees for professional or technical services
  14. Section 173 - Recovery of tax in respect of non-resident from his assets
  15. Section 163 - Who may be regarded as agent
  16. Section 160 - Representative assessee
  17. Section 139 - Return of income
  18. Section 115AD - Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
  19. Section 115A - Tax on dividends, royalty and technical service fees in the case of foreign companies
  20. Section 10(1) to 10(10D) - Incomes not included in total income [Clause (1) to Clause (10D)]
  21. Rule 11UB - Fair market value of assets in certain cases
  22. Rule 114DB - Information or documents to be furnished under section 285A
  23. Manual - Transfer of capital assets in a demerger, being a share of a foreign company - Section 47(vicc)
  24. Manual - Transfer of capital assets in a scheme of amalgamation, being a share of a foreign company - Section 47(viab)

 

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