Thanks for your reply @HimanshuSinha-msft
I think , we can connect to on-premises datasources, using 2 runtimes. Azure SSIS IR and Azure Self Hosted IR.
Below is what i think , as per my understanding.
If we are trying to rewrite SSIS packages in Azure Native ADF or writing Azure Native ADF, then to connect to on-premises, we can use Azure Self Hosted IR
If we are using Lift and Shift model of Azure SSIS IR , then i think we can stick with Azure SSIS IR, since it connects to a VNet and hence can connect to on-premises.