Income Tax Act 2025: Section 182 for Tax Year 2025-26

Section 160 of the Income Tax Act 2025 addresses the treatment of connected persons and accommodating parties when determining tax benefits. These provisions are part of the General Anti-Avoidance Rule (GAAR) under Chapter XA of the Income Tax Act 1961.

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Treatment of connected person and accommodating party

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

In this Chapter, in determining whether a tax benefit exists,—

(a) the parties who are connected persons in relation to each other maybe treated as one and the same person;

(b) any accommodating party may be disregarded;

(c) the accommodating party and any other party may be treated as one and the same person;

(d) the arrangement may be considered or looked through by disregarding any corporate structure.


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