Which income is deemed to accrue or arise in india as per the tax laws?
If transacting party is from India, it does not imply a business connection in India
According to Indian taxation laws (Income Tax Act, 1961), the income of a person is taxed in India if it is accrued or has been received in India. However, there is an exception; Section 9 of the Income Tax Act deals with income deemed to accrue or arise in India. In other words, there may be a situation where the income has accrued outside India or has been received outside India but will be taxed in India.