Residential status of assessee other than an Individual & HUF
In case of an assessee, other than an individual and HUF, the residential status depends upon the place from which its affairs are controlled and managed. These assessees can only be either resident or non-resident. There is no concept of ordinarily resident in case of these assessees.
As per Section 6(2), a partnership firm or an association of persons are said to be resident in India if control and management of their affairs are wholly or partly situated within India during the relevant previous year. They are, however, treated as non-resident if control and management of their affairs are situated wholly outside India.
As per Section 6(3), an Indian company is always resident in India. A foreign Company is resident in India only if, during the previous year, control and management of its affairs is situated wholly in India. Where part or whole of control and management of the affairs of a foreign company is situated outside India, it shall be treated as a non-resident company.
Residual Category (not covered under any of the other category)
As per Section 6(4), every other person is resident in India if control and management of his affairs is, wholly or partly, situated within India during the relevant previous year. On the other hand, every other person is non-resident in India if control and management of its affairs is wholly situated outside India.