Income Tax Act, 2025
Section 6: Ins. by s. 5, ibid. (w.e.f. 11965).
6. Ins. by s. 5, ibid. (w.e.f. 11965).
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9. Income deemed to accrue or arise in India.—(1) The following incomes shall be deemed to
accrue or arise in India:—
(i) all income accruing or arising, whether directly or indirectly, through or from any business
connection in India, or through or from any property in India, or through or from any asset or source
of income in India, 1*** or through the transfer of a capital asset situate in India.
Explanation 2[1].—For the purposes of this clause—
(a) in the case of a business of which all the operations are not carried out in India, the
income of the business deemed under this clause to accrue or arise in India shall be only such part
of the income as is reasonably attributable to the operations carried out in India;
(b) in the case of a non-resident, no income shall be deemed to accrue or arise in India to him
through or from operations which are confined to the purchase of goods in India for the purpose
of export;
3* * * * *
4[(c) in the case of a non-resident, being a person engaged in the business of running a news
agency or of publishing newspapers, magazines or 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 operations which are confined to the shooting of any cinematograph film in
India;]
6[(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.]
7[Explanation 2.—For the removal of doubts, it is hereby declared that “business connection”
shall include any business activity carried out through a person who, acting on behalf of the nonresident,—
1. The words “or through or from any money lent at interest and brought into India in cash or in kind” omitted by
Act 66 of 1976, s. 4 (w.e.f. 11976).
2. Explanation renumbered as Explanation 1 thereof by Act 32 of 2003, s. 5 (w.e.f. 12004).
The following incomes shall be deemed to
accrue or arise in India:—
all income accruing or arising, whether directly or indirectly, through or from any business
connection in India, or through or from any property in India, or through or from any asset or source
of income in India, 1*** or through the transfer of a capital asset situate in India.
Explanation 2[1].—For the purposes of this clause—
in the case of a business of which all the operations are not carried out in India, the
income of the business deemed under this clause to accrue or arise in India shall be only such part
of the income as is reasonably attributable to the operations carried out in India;
in the case of a non-resident, no income shall be deemed to accrue or arise in India to him
through or from operations which are confined to the purchase of goods in India for the purpose
of export;
3* * * * *
4[
in the case of a non-resident, being a person engaged in the business of running a news
agency or of publishing newspapers, magazines or 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[
in the case of a non-resident, being—
an individual who is not a citizen of India; or
a firm which does not have any partner who is a citizen of India or who is resident in
India; or
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 operations which are confined to the shooting of any cinematograph film in
India;]
6[
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.]
7[Explanation 2.—For the removal of doubts, it is hereby declared that “business connection”
shall include any business activity carried out through a person who, acting on behalf of the nonresident,—
1. The words “or through or from any money lent at interest and brought into India in cash or in kind” omitted by
Act 66 of 1976, s. 4 (w.e.f. 11976).
2. Explanation renumbered as Explanation 1 thereof by Act 32 of 2003, s. 5 (w.e.f. 12004).