Income deemed to accrue or arise in India - Section 9 - International Taxation - Income Tax

Income deemed to accrue or arise in India - Section 9 Sec 9(1)(i) Income accruing or arising outside India, directly or indirectly through or from a) Any Business Connection in India b) Any Property/Asset or source of income in India c) Transfer of Capital Asset situated in India Sec 9(1)(ii) Salary earned for services rendered in India Sec 9(1)(iii) Salary Payable by government to Indian Citizen for services rendered outside India Sec 9(1)(iv) Dividend paid by Indian Company Outside India Sec 9(1) (v) Interest, if payable by From Person resident in India Exceptions If the money borrowed and used or technical services or royalty services are utilised for the purpose of business or profession carried on outside India If the money borrowed and used or technical services or royalty services are utilised for making income from source outside India Sec 9(1)(vi) Royalty, if payable by Government Sec 9(1)(vii) Fees for technical service, if payable by A Non-Resident Purpose If money is borrowed and used for the purpose of business or profession carried in India If Technical services or royalty services are utilised for the purpose of business or profession carried on in India or making income from any source in India Section 9(1)(viii) Deemed accrual of gift made to a person outside India Gift of any money made by a resident to NR or Foreign Company on or after 5 th July 2019 shall be deemed to be accrue or arise in India if the aggregate of such money exceeds ₹50,000 which is chargeable to tax u/s 56(2)(x). However this does not include transfer of property outside India without consideration or inadequate consideration to a non-corporate non-resident or foreign company. substituted by F.A. 2023 , In section 9(1)(viii) of the Income-tax Act, the following clause shall be substituted with effect from the 1st day of April, 2024, namely - income arising outside India , being any sum of money referred to in section 2(24)(xviia), paid by a person resident in India (a) on or after the 5th day of July, 2019 to a non-resident, not being a company, or to a foreign company; or (b) on or after the 1st day of April, 2023 to a person not ordinarily resident in India within the meaning of clause (6) of section 6 . . Section 2(24(xviia) any sum of money or value of property referred to in section 56(2)(x) . In other words, This clause is applicable if the following conditions are satisfied - Payer is resident in India. payer may be Resident ; or Ordinary resident in India; or Resident but not ordinary resident in India; or Any person Recipient is A Non-resident/ Foreign company and sum of money is received on or after July 5, 2019 or a person not ordinarily resident in India and sum of money is received on or after the 1st day of April, 2023 The transaction is not covered by any of the exceptions specified by section 56(2)(x). If these conditions specified, money received (Exceeding Rs. 50,000 per financial year) by the Non-resident/ Foreign company/ person not ordinarily resident in India) shall be deemed to be accrue or arise in India. However section 9(1)(viii) does not covered by the deeming provisions on gift of any property movable or immovable with consideration or without consideration .