Under the Income-tax Act, the following incomes are deemed to be received in India:

• Employer's contribution to a recognized provident fund exceeding the prescribed limit.
• Accumulated balance of a recognized provident fund that is taxable under the rules.
• Transferred balance from an unrecognized provident fund to a recognized provident fund, which is taxable.
• Pension income or any other deferred salary credited to an individual’s account.

The following incomes are deemed to accrue or arise in India:

• Income from business connections in India.
• Income from property in India.
• Income from capital assets situated in India.
• Income from services rendered in India.
• Income from interest, royalty, or fees for technical services paid by the Indian government or a resident taxpayer.

A business connection is established in India when:

• A non-resident taxpayer has a substantial economic presence in India.
• A taxpayer conducts business activities through an agent or representative in India.
• The non-resident taxpayer has a direct link to income generation in India through a source or permanent establishment.

Key provisions include:

• Section 9: Deemed income rules for income arising or accruing in India.
• Section 195: TDS on payments made to non-residents.
• Section 115A to 115BBD: Special tax rates for specific income types (e.g., royalty, dividends).
• Double Taxation Avoidance Agreements (DTAAs): Relief for double taxation.

FEMA governs foreign exchange transactions, classified into:

• Current Account Transactions: Day-to-day transactions like remittances, travel, and education.
• Capital Account Transactions: Transactions altering assets and liabilities outside India.

It applies to individuals, companies, and other entities in India or involved in Indian transactions.

Capital Account transactions alter the assets or liabilities of residents outside India or non-residents in India. Examples include:

• Investment in foreign securities.
• Transfer of immovable property.
• Loans and borrowings with non-residents.

These transactions are related to day-to-day operations and do not affect the asset base.
Examples include:

• Payments for goods and services.
• Travel, education, and medical expenses.
• Remittances for family maintenance.

The residential status of a person determines:

• Scope of taxable income in India.
• Residents are taxed on global income, while non-residents are taxed only on Indian-sourced income.

The residential statuses are:

• Resident and Ordinarily Resident (ROR): Global income taxable.
• Non-Resident (NR): Taxed only on Indian-sourced income.

HUFs can be classified as:

• Resident and Ordinarily Resident (ROR).
• Non-Resident (NR).

The status depends on the control and management of HUF affairs and the Karta’s residential status.

Residential status depends on:

• Number of days an individual is physically present in India.
• Satisfaction of specific conditions regarding stay duration in the preceding years.

A company is resident if:

• It is incorporated in India.
• Its place of effective management (POEM) is in India during the financial year.

Such entities can be classified as:

• Resident: If control and management are wholly or partly in India.
• Non-Resident: If control and management are entirely outside India.

• Resident (ROR): Taxed on global income.
• Resident (RNOR): Taxed on Indian income and income from foreign sources linked to India.
• Non-Resident (NR): Taxed only on income that accrues, arises, or is deemed to accrue or arise in India.