SECTION 9 OF INCOME TAX ACT

Section 9 of income tax act relates to income deemed to arise or eared in India. Some income has confusion either this income arises or accrues in India or not. Incomes which come under section 9 of income tax act deemed that these incomes arise in India and income tax will be applicable to them. The following income is deemed under section 9 of income tax act as arise in India. Section 9 tells that income deemed to arise in India if any income arise or accure in India directly or indirectly by

-          If there is any business connection in India.
-          If there is some property connection in India.
-          Income comes through or from any assets or source of income in India.
-          Income come through the transfer of a capital assets situate in India: - any capital assets transferring either movable or immovable in India, the capital gain will be deemed to arise in India irrespective of the agreement place and purchaser and seller nationality.

Such income are also deemed to arise in India,
-          Any salary payable for the service given in India, the income will be deemed to arise in India.
-          If any person gets the pension and had worked in India, the income will be taxed.
-          If government of India is paying to the services to outside India, this income will be deemed to arise in India irrespective of the person working in any country and time. Like if there are some workers in Indian embassy in America, Government of India is paying them salary, so this income will be deemed to arise in India and he needs to pay income tax in India.
-          Any dividend paid by Indian company outside India is deemed to arise in India and company need to pay income tax on it.
-          Any interest payable to the Indian government.
-          Any royalty payable to government to India.
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There are some explanations which need to know first to know all about section 9 of income tax which are as follows.
  • if operations of business which are partly in India and partly outside India, the income will be deemed to arise in India only of that part which is carried in India and not on outside on India soil.
  • In the case of non resident, the income will not deem to arise in India if he is engaging in purchasing of the goods in India for export. If the non resident person is engaging in collecting news and publish to other news company or magazines, newspaper etc, his income also don’t deemed to arise in India.
  • No income will be deemed to arise in India of a NRI which are confined to the shooting of a cinema film in India
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