GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Resident in India
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Not ordinarily resident in India
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Non-resident in India
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None of these
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Detailed explanation-1: -Presently, a foreign company is considered resident in India if the control and management of its affairs is situated wholly in India. To bring to tax those companies that are incorporated outside India but controlled from India, the condition of PoEM has been introduced.
Detailed explanation-2: -An Indian company is always resident in India. Even if an Indian company is controlled from a place located outside India (or even if shareholders of an Indian company controlling more than 51 per cent voting power are non-resident and/or located outside India), the Indian company is resident in India.
Detailed explanation-3: -A resident individual will be treated as resident and ordinarily resident in India during the year if he satisfies any one of the following conditions: (1) He is resident in India for at least 2 years out of 10 years immediately preceding the relevant year.