Income Tax Tutorial












Certain Income that deemed to Accrue / Arise in India- Section 9

As per the Section 9  there are certain income that deemed to be arise / accrue in India. it ignores the fact  that where this income is actually arise / accrue i.e. either in India or outside India.

This section is applicable for all , ignoring the residential status  

Following are Nature of Income

>Income from business connection in India

>Income from any property , asset or source of income in India

>Income from Salary if service is rendered in India

>If Employer is Government of India and employee is a citizen of India than the salary income will be considered as arise / accrued in India, even if it actually arise /accrue outside of India

>Dividend paid by Indian Companies


Q What is income from Business connection Section 9 (1)(i)

Ans Income  actually arise outside India to taxpayer  by virtue of Business Connection  in India

Q. What is Business Income

Business connection refers to professional connection where a person is acting on behalf of non resident

if a person acting any one or more of the following action then it will be covered under business connection

>On behalf of non resident he is performing action with authority to conclude contracts

>On behalf of non resident he is performing action not with authority but habitually to1) maintains stock of goods from which he regularly delivers goods  2)Merchandise

>For non resident he habitually mainly or wholly securing orders in India

Q. does Independent broker / agent also cover for business connection stated above

Ans. No, if non resident carries on business via agent /broker /any other having independent status, it wil not considered as business connection in India

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