Power of Board to make safe harbour rules
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 167(1) of Income Tax Act 2025
(1) The determination of—
- (a) income referred to in section 9(2); or
- (b) arm’s length price under section 165 or 166,
shall be subject to safe harbour rules.
Section 167(2) of Income Tax Act 2025
(2) For the purposes of sub-section (1), the Board may make rules for safe harbour.
Section 167(3) of Income Tax Act 2025
(3) In this section, “safe harbour” means circumstances in which the income-tax authorities shall accept,––
- (a) the transfer price; or
- (b) the income, deemed to accrue or arise under section 9(2),
declared by the assessee.
