§ 167
Chapter X — Special Provisions Relating To A Voidance Of Tax
Power of Board to make safe harbour rules
Income-tax Act, 2025
The income tax authorities can accept certain transfer prices or incomes declared by the assessee under specific circumstances. These circumstances are defined by safe harbour rules made by the Board. The rules apply to income referred to in section 9(2) and arm's length prices under sections 165 or 166.
- Safe harbour rules help determine acceptable income and transfer prices.
📜 Official text of the section +
167. (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.
(2) For the purposes of sub-section (1), the Board may make rules for safe harbour.
(3) For the purposes of 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.
Advance pricing agreement.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.