A Company is an Indian Company or where in a year, the control and management of the whole of its affairs are situated in India.
A Company will be Resident if, – It is an Indian company or during the previous year control and management of company is situated wholly in India.
A Company will be Non-Resident if, – It is not an Indian company or during the previous year control and management of company is situated partly or wholly outside India.
Reference:
As per Section 6(3), of the Income Tax Act, 1961-
(3) A company is said to be resident in India in any previous year, if—
(i) it is an Indian company ; or
(ii) during that year, the control and management of its affairs is situated wholly in India.
Following clause (3) shall be substituted for the existing clause (3) of section 6 by the Finance Act, 2015, w.e.f. 1-4-2016 :
(3) A company is said to be resident in India in any previous year, if—
(i) it is an Indian company; or
(ii) its place of effective management, in that year, is in India.
Explanation.—
For the purposes of this clause “place of effective management” means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole, are in substance made.