<h1>India's Revised Direct Tax Code Redefines Foreign Company Residency, Adopts 'Place of Effective Management' Standard.</h1> The revised Direct Tax Code (DTC) proposes changes to determine the tax residence of foreign companies in India. Under the DTC, a foreign company will be considered a resident in India if its control and management are partly in India, raising concerns about potential taxation on global income and impacting foreign investment. The current high threshold of 'wholly in India' is seen as too narrow, prompting a shift towards the internationally recognized 'place of effective management' standard. Additionally, Controlled Foreign Corporation provisions are suggested to tax passive income of foreign companies controlled by Indian residents, even if not distributed.