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Section 4: Grounds for Processing Personal Data

Personal data may only be processed for a lawful purpose with valid consent from the individual or under specific legitimate uses recognized by the Act.

Statutory Reference: Act No. 22 of 2023•Updated October 17, 2026

Statutory Text (Official Gazette)

(1) A person may process the personal data of a Data Principal only in accordance with the provisions of this Act and for a lawful purpose,—

  • (a) for which the Data Principal has given her consent; or
  • (b) for certain legitimate uses.

(2) For the purposes of this section, the expression “lawful purpose” means any purpose which is not expressly forbidden by law.


What Section 4 Means in Plain English

Section 4 establishes the fundamental legal gate for any data processing in India: no data processing is permitted by default.

To process any personal data legally, your business must establish one of two legal grounds:

  1. Explicit, Lawful Consent (Section 6): The user affirmatively agreed after receiving an itemised notice. For modern websites, marketing analytics, tracking cookies, and user onboarding, this is the primary legal ground.
  2. Specific Legitimate Uses (Section 7): Strict, narrow statutory situations where consent is not required (e.g., fulfilling a voluntary request made by the user, government subsidies, medical emergencies, disasters, or employment obligations).

What Does NOT Count as a Ground

Unlike the European GDPR, India’s DPDP Act does not have a broad “legitimate interest” exception for commercial marketing or analytics. You cannot track users across the web claiming commercial interest without direct, affirmative consent.


Engineering Checklist

  • Classify your processing grounds: Audit every data pipeline and tag whether it relies on User Consent or a Section 7 Legitimate Use.
  • Halt untagged data flows: Any personal data flow without an explicit consent record or statutory exemption creates immediate legal liability.
  • Document lawful purposes in your internal registry: Keep an internal record of processing activities linking each database column to its lawful basis.
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