Amendments to Income-tax Rules for Safe Harbour Rules · Notification No. 21/2025
CBDT press release Notification No. 21/2025 · 25 Mar 2025
Official title
CBDT notifies amendments in Income-tax Rules, 1962 to expand the scope of safe harbour rules
Official record
Open source pageSummary
Check the official recordWhat changed
The Central Board of Direct Taxes expands the scope of safe harbour rules for the determination of arm's length price. The board increases the transaction threshold for taxpayers to avail safe harbour. It also includes lithium ion batteries for electric or hybrid electric vehicles in the definition of core auto components. These amendments apply to assessment years 2025-26 and 2026-27.
Key dates
- Notification publication date
- 25 Mar 2025
Who is affected
- Assessees who opt for safe harbour.
Thresholds
Document text
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 25th March, 2025
Press Release
CBDT notifies amendments in Income-tax Rules, 1962 to expand the scope of safe harbour rules
Section 92CB of the Income-tax Act, 1961 inter alia, empowers the CBDT to make safe harbour rules, for the determination of arm's length price under section 92C or section 92CA.
The scope of the safe harbour rules has been expanded by -:
- (a) Increasing the threshold for availing safe harbour from Rs. 200 Crore to Rs. 300 Crore;
- (b) Including the “lithium ion batteries for use in electric or hybrid electric vehicles” in the definition of core auto components.
To provide tax certainty to the assessees opting for safe harbour, the amendments are applicable to two assessment years 2025-26 and 2026-27.
CBDT Notification No. 21/2025 dated 25.03.2025 has been published in https://egazette.gov.in/
(V. Rajitha)
Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT
Source details
- Source
- Central Board of Direct Taxes / Income Tax Department
- Type
- press release
- Published by source
- 25 Mar 2025
- Document number
- Notification No. 21/2025
- Issuing division
- Central Board of Direct Taxes
- Coverage area
- direct-tax