Where must a firm's control and management be situated for the firm to be resident in India for a tax year under section 6(9) of the Income-tax Act, 2025?
Question and options
Where must a firm's control and management be situated for the firm to be resident in India for a tax year under section 6(9) of the Income-tax Act, 2025?
Mainly in India
At least partly in India
In India as its place of effective management
Wholly in India
Answer and explanation
Correct answer: B - At least partly in India
Section 6(9) of the Income-tax Act, 2025 makes a firm resident in India unless the control and management of its affairs is situated wholly outside India, so even partial control in India is enough. The place-of-effective-management test in section 6(10) applies to companies, not firms.
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