Solution:Companies can be classified into two residential status categories only. A company can either be a resident or non-resident.
(A) Resident - A company is said to be resident in Indian in any previous year if (i) it is a Indian company or (ii) during the year, the control and management of its affairs are situated wholly in India.
(B) Non- Resident - (i) If company does not satisfy any of the aforesaid conditions of residence, it is said to be a 'non- resident' company.
(ii) In Other words, if the company is not registered in India and its control and management is situated wholly or partially outside India. It is regarded as a non-resident.