The country's Central Board of Film Certification has issued an 'Adult' certification for her new music video Stars Are Blind, which means it cannot be broadcast on any channel.
An official at her local label, EMI Virgin India Ltd, reported that the board said the clip had sexual connotations.
"In fact, we had edited the video and sent a fresh copy, but they weren't happy with that," said Narendra Kusnur, the label's manager of international A&R (artists and repertoire).
Since the marketing campaign for Hilton's debut album Paris, released in India on Tuesday, has been sponsored by a shampoo company, the Stars video will be streamed on a promotional Web site, once details are worked out.
"To the best of our knowledge, there are no rules yet regarding censorship on the net so we plan to use the online platform to generate buzz," said EMI Virgin marketing manager Kaveri Khullar.