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Residential Status Of A "Company"- under the 'Income Tax Act.'


The residential status of a company is to be determined on the basis of its incorporation or registration. Section 6(3) provides the following tests in this connection.

1. Resident [Section 6(3)]

A company is resident in India if:

(i) it is an India company, or

(ii) during the previous year, control and management of its affairs is situated wholly in India.

2. Not Ordinarily Resident

A company cannot have this status. It can either be resident or non-resident.

3. Non-Resident [Section 2(30)]

A company shall be ‘non-resident’ if it is not resident in India during the relevant accounting year.

It means that, a company whose control and management is situated wholly or partially outside India, will be non-resident company.
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