How will you decide the residential status of the following companies or firms for the Previous Year 2016-17 under the provisions of Income Tax Act, 1961? Give brief reasons for your answer: (iv) ABC Ltd., a company inco

As per the provision of Section 6(3) of the Income tax Act, 1961 for the Financial Year 2016-17, All Indian companies within the meaning of Section 2(26) of the Act are always resident in India regardless of the place of control and management of its affairs. Further, in the case of a foreign company, for the FY 2016-17, the place of control and management of its affairs is the basis on which the company's residential status is determinable. Accordingly a company shall be said to be resident in India in any previous year, if- it is an Indian company; or the control and management of its affairs is wholly situated in India. ABC Ltd. , a company incorporated in Australia, of which the control and management of the affairs of the business is situated partly outside India and partly in India. As the control and management of the affairs of the business of ABC Ltd. is situated partly outside India and partly in India and accordingly ABC Ltd. shall be a non-resident company.