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Date: 2025-03-25 Category: Extra Ordinary State: Union Government Country: India

Amendment of Income tax Rules to provide for safe Harbour Rules under section 92CB for AY 2025 26

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification introduces the Income-tax (Sixth Amendment) Rules, 2025, which further amend the Income-tax Rules, 1962.
  • These amendments are made by the Central Board of Direct Taxes (CBDT) in exercise of its powers conferred by section 295 read with sub-section (2) of section 92CB of the Income-tax Act, 1961.

Key Changes

  • Rule 10TA(b) is amended to include lithium-ion batteries for use in electric or hybrid electric vehicles.
  • Rule 10TD(2A) is amended to change the number 'two' to 'three' in column number (3) for serial numbers 1, 2, 3, 7 and 8 in the table.
  • Rule 10TD(3B) is amended to extend the applicability to assessment years 2025-26 and 2026-27, in addition to the existing assessment years 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25.
  • Rule 10TE(2) is amended to insert the words 'for one assessment year' after the word, figures and letters 'rule 10TD' in the fourth proviso.

Impact Analysis

Electric Vehicle Industry

  • Action Item: Evaluate the specific tax implications and incentives arising from this amendment for the electric vehicle and battery manufacturing sectors. Engage with CBDT for clarifications if needed.

Transfer Pricing and Safe Harbour Rules

  • Action Item: Analyze the impact of the changes in Rule 10TD on transfer pricing policies and documentation requirements. Update internal guidelines and consult with tax advisors to ensure compliance.

Taxpayers

  • Action Item: Taxpayers should review their transfer pricing arrangements and documentation to ensure compliance with the amended rules. Seek professional advice to understand the implications of the changes.

Government Revenue

  • Action Item: Government should monitor the impact of these amendments on revenue collection and adjust policies as needed to achieve desired economic outcomes.

Key Entities Referenced

Central Board of Direct Taxes (CBDT): The entity responsible for making the amendments to the Income-tax Rules, 1962. Income-tax Act, 1961: The principal act governing income tax in India, under which the amendments are made. Income-tax Rules, 1962: The set of rules framed under the Income-tax Act, 1961, which are being amended by this notification. Section 295 of the Income-tax Act, 1961: The section that grants powers to the CBDT to make rules for carrying out the purposes of the Income-tax Act, 1961. Section 92CB of the Income-tax Act, 1961: The section pertaining to determination of arm's length price in transfer pricing, relevant to the amendments in Rule 10TD. Rule 10TA of the Income-tax Rules, 1962: Rule pertaining to eligible activities for the purposes of section 80-IAB of the Income-tax Act, 1961. Rule 10TD of the Income-tax Rules, 1962: Rule pertaining to safe harbour rules for transfer pricing. Rule 10TE of the Income-tax Rules, 1962: Rule pertaining to secondary adjustment to transfer price.
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रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-25032025-261944 CG-DxLx-xEG-I2D5H0x3x2x0 25-261944 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 158] नई ददल्ली, मगं लिार, माच ड25, 2025/चत्रै 4, 1947 No. 158] NEW DELHI, TUESDAY, MARCH 25, 2025/CHAITRA 4, 1947 जित्त मत्रं ालय (राजस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई ददल्ली, 25 माचड, 2025 स.ं 21/2025 आय-कर सा.का.जन. 193(अ).—केंद्रीय प्रत्यक्ष कर बोड,ड आयकर अजधजनयम, 1961 (1961 का 43) की धारा 92गख की उपधारा (2) के साथ पठित धारा 295 द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, आय-कर जनयम 1962 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाता ह,ै अथाडत:् - 1. (1) इन जनयमों का संजक्षप्त नाम आय-कर (छिा संिोधन) जनयम 2025 ह ै। (2) य ेराजपत्र में प्रकािन की तारीख को प्रिृत्त होंग े। 2. आयकर जनयम, 1962 म,ें -- (क) जनयम 10नक के खंड (ख) में,-- 2037 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] I. उपखंड (iii) म ेंअतं म ें‘’या’’ िब् द अंत:स्ट् थाजप त दकया जाएगा; II. उपखंड (iii) के पश् चात ् जन‍न जलजख त उपखडं रखा जाएगा, अथाडत:-- ‘’(iv) इलैज्र क या हाईजलड इलैज्र क यानों म ेंउपयोग के जलए जलजथयम बयन बै री’’; (ख) जनयम 10नघ म,ें I. उपजनयम (2क) की सारणी म,ें -- (अ) क्रम संख यांक 1 के स्ट् तंभ संख या (3) के खंड (ii) म,ें ‘’दो’’ िब् द के स्ट्थ ान पर ‘’तीन’’ िब् द रखा जाएगा ; (आ) क्रम सखं यांक 2 के स्ट्त ंभ संख या (3) के खंड (ii) म,ें ‘’दो’’ िब् द के स्ट् थान पर ‘’तीन’’ िब्द रखा जाएगा; (इ) क्रम संख यांक 3 के स्ट्त ंभ सखं या (3) के आरंजभक भाग म,ें ‘’दो’’ िब् द के स्ट् थान पर ‘’तीन’’ िब् द रखा जाएगा; (ई) क्रम संखय ांक 7 के स्ट्त ंभ संखय ा (3) म,ें ‘’दो’’ िब् द के स्ट् थान पर ‘’तीन’’ िब् द रखा जाएगा; (उ) क्रम संखय ांक 8 के स्ट् तंभ संखय ा (3) म,ें ‘’दो’’ िब् द के स्ट् थान पर ‘’तीन’’ िब् द रखा जाएगा; II. उपजनयम (3ख) म,ें ‘’जनधाडरण िर्ड 2020-21, 2021-22, 2022-23, 2023-24 और 2024-25’’ िब द् ों और अंकों के स्ट्थ ान पर ‘’जनधाडरण िर् ड 2020-21, 2021-22, 2022-23, 2023-24, 2024-25, 2025-26 और 2026-27’’ िब्द और अंक रखे जाएंग े । (ग) जनयम 10नङ के उपजनयम (2)के चौथे परंतुक म ें‘संश्रय के’ िब् दों के पश् चात ्‘’एक जनधाडरण िर्ड के जलए’’ िब्द अंत:स्ट् थाजपत दकए जाएंग े । [फा.सं. 370142/6/2025- ीपीएल] िाकुर ससह मपिाल, जनदेिक ठ प्पण : मलू जनयम भारत के राजपत्र, साधारण, भाग-II, खंड 3, उपखंड (ii) म ें अजधसूचना संखया का.आ. 969(अ) तारीख 26 माच,ड 1962 द्वारा प्रकाजित दकए गए थ े और अंजतम संिोधन अजधसूचना संखया सा.का.जन. 145(अ) तारीख 24 फरिरी, 2025 द्वारा दकए गए । MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 25th March, 2025 No. 21/2025 INCOME-TAX G.S.R. 193(E).—In exercise of the powers conferred by section 295 read with sub-section (2) of section 92CB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:___[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 3 1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962,– (a) in rule 10TA, in clause (b),– I. in sub-clause (iii), at the end, the word ―or‖ shall be inserted; II. after sub-clause (iii), the following sub-clause shall be inserted, namely:– ―(iv) lithium ion batteries for use in electric or hybrid electric vehicles.‖; (b) in rule 10TD,— I. in sub-rule (2A), in the Table,— (A) in Sl.No. 1, in column number (3), in clause (ii), for the word ―two‖, the word ―three‖ shall be substituted; (B) in Sl.No. 2, in column number (3), in clause (ii), for the word ―two‖, the word ―three‖ shall be substituted; (C) in Sl.No. 3, in column number (3), in the opening portion, for the word ―two‖, the word ―three‖ shall be substituted; (D) in Sl.No. 7, in column number (3), for the word ―two‖, the word ―three‖ shall be substituted; (E) in Sl.No. 8, in column number (3), for the word ―two‖, the word ―three‖ shall be substituted; II. in sub-rule (3B), for the words and figures ―assessment years 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25‖, the words and figures ―assessment years 2020-21, 2021-22, 2022-23, 2023-24, 2024- 25, 2025-26 and 2026-27‖ shall be substituted; (c) in rule 10TE, in sub-rule (2), in the fourth proviso, after the word, figures and letters ―rule 10TD‖, the words ―for one assessment year‖ shall be inserted. [F. No. 370142/6/2025-TPL] THAKUR SINGH MAPWAL, Director Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification number G.S.R. 145(E) dated the 24th February, 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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