<h1>India's 2018 Budget Redefines Business Connection, Targets Digital Transactions for Taxation from April 2019.</h1> The 2018 budget proposes amending India's tax laws to include 'significant economic presence' as a criterion for establishing a business connection, allowing India to tax non-resident enterprises engaging digitally with the Indian market. This change addresses the inadequacy of the current physical presence-based nexus rule, which fails to capture digital business activities. The amendment aims to redefine business connection to include significant economic presence through digital transactions or continuous interaction with users in India. It will enable India to negotiate new nexus rules in Double Taxation Avoidance Agreements, effective from April 1, 2019, for the assessment year 2019-20 onwards.