A company has been defined
as a juristic person having an independent and separate legal entity
from its shareholders. Income of the company is computed and assessed
separately in the hands of the company. however the income of the
company which is distributed to its shareholders as dividend is
assessed in their individual hands. Such distribution of income
is not treated as an expenditure in the hands of company, the income
so distributed is an appropriation of the profits of the company.
Residence of a company :
A company is said to be a resident in India during the relevant
previous year if:
- It is an Indian company
- If it is not an Indian company then, the control and
the management of its affairs is situated wholly in India
A company is said to be non-resident in India if it is
not an Indian company and some part of the control and management of its
affairs is situated outside India.
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