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: (v) PCR & Co., a partners

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. The Partnership firm is non-resident in India, if control and management of its business affairs is wholly situated outside India as per section 6(2) of the Income tax Act, 1961. Accordingly, PCR & Co. shall be non-resident in India.