The Central Board of Direct Taxes (CBDT) has issued the Income-tax (30th Amendment) Rules, 2021. The Rule 10D of Income-tax Rules, 1961 provides for Safe Harbour provisions. The rule provides that where an eligible assessee has entered into an eligible international transaction and the option exercised by the said assessee is valid, the transfer price declared by the assessee in respect of such transaction shall be accepted by the income-tax authorities, if it is in accordance with the circumstances provided in the rule.
The amendment has extended the applicability of these safe harbour provisions for Assessment Years 2020-21 and 2021-22. They shall be deemed to have come into force from the 1st day of April, 2021.
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