<h1>India Expands Tax Rules for Non-Residents: Significant Economic Presence Now Includes Digital Transactions. Public Comments Open Until August 10.</h1> The Government of India introduced the concept of Significant Economic Presence (SEP) in the Income-tax Act, 1961, to address the taxation of non-residents conducting business in India without physical presence. This change, part of the Finance Act, 2018, expands the definition of 'business connection' to include digital transactions. SEP is defined by thresholds of revenue from transactions or user engagement in India. The government is seeking public and stakeholder input on setting these thresholds for both physical and digital transactions and user interactions. Comments are invited until August 10, 2018.