What is the income-tax residence status of an Indian company under section 6(10) of the Income-tax Act, 2025?
Question and options
What is the income-tax residence status of an Indian company under section 6(10) of the Income-tax Act, 2025?
Non-resident in India
Resident in India
Resident but not ordinarily resident
Resident only if effective management is in India
Answer and explanation
Correct answer: B - Resident in India
Section 6(10) of the Income-tax Act, 2025 treats an Indian company as resident in India in every tax year, without any further test. The place-of-effective-management test applies only to a company that is not an Indian company. The not-ordinarily-resident category under section 6(13) applies to individuals and Hindu undivided families, not to companies.
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