Central Board of Direct Taxes (CBDT) has issued a Notification No 29/2018 dated 22nd June,2018 to notify that in case where a foreign company is said to be resident in India on account of its Place of Effective Management (PoEM) being in India in any previous year and such foreign company has not been resident in India in any of the previous years preceding the said previous year, then the provisions of the Income Tax Act, 1961 relating to the computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax shall apply to the foreign company for the said previous year with some exceptions, modifications and adaptations as specified in the attached Notification.
This notification shall be deemed to have come into force from the 1st day of April, 2017
Source: Income Tax Department- Government of India
