Section 9 → Section 9
Income deemed to accrue or arise in India
Quick Answer
Section 9 of the Income Tax Act, 1961 (Income deemed to accrue or arise in India) corresponds to Section 9 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 9
The starting point is Section 9 of the Income Tax Act, 1961 — income deemed to accrue or arise in india. Taxes income connected to an Indian business connection, property in India, or royalty/FTS paid by an Indian resident.
The new code maps this to Section 9: the provision is retained and renumbered as Section 9 of the Income-tax Act, 2025, applying from 1st April 2026. Significantly updated to cover Significant Economic Presence (SEP) for digital companies operating in India without a physical office.
On the ground, changes to Section 9 carry a Critical impact. The core of India's International Taxation framework.
Sec 9
Provision Summary
Taxes income connected to an Indian business connection, property in India, or royalty/FTS paid by an Indian resident.
Sec 9
Provision Summary
Significantly updated to cover Significant Economic Presence (SEP) for digital companies operating in India without a physical office.
Key Changes & Highlights
- Digital user thresholds defined tightly to tax foreign tech giants.
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Frequently Asked Questions
What does Section 9 of the Income Tax Act 1961 deal with?
Section 9 of the Income Tax Act, 1961 covers income deemed to accrue or arise in india. Taxes income connected to an Indian business connection, property in India, or royalty/FTS paid by an Indian resident.
Where does Section 9 of the ITA 1961 go under the Income-tax Act, 2025?
Section 9 of the Income Tax Act, 1961 maps to Section 9 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Significantly updated to cover Significant Economic Presence (SEP) for digital companies operating in India without a physical office.
Why does the change to Section 9 matter for taxpayers?
The transition impact for Section 9 is rated Critical. The core of India's International Taxation framework.
What are the key changes to Section 9 under the Income-tax Act, 2025?
Digital user thresholds defined tightly to tax foreign tech giants. These points are specific to Section 9 (Income deemed to accrue or arise in India).
Disclaimer: This mapping of Section 9 (Income deemed to accrue or arise in India) to Section 9 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 9 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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