Maintenance, keeping and furnishing of information and document by certain persons
[Section-171 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 171(1) of Income Tax Act 2025
171(1) Every person,––
- (a) who has entered into an international transaction or specified domestic transaction; or
- (b) is a constituent entity of an international group,
shall keep and maintain such information and document in respect thereof and for such period and in such manner, as prescribed.
Section 171(2) of Income Tax Act 2025
171(2) The Assessing Officer or the Commissioner (Appeals) may, during any proceeding under this Act, require any person referred to in sub-section (1)(a) to furnish any information or document referred therein within ten days from the date of receipt of a notice issued in this regard.
Section 171(3) of Income Tax Act 2025
171(3) The Assessing Officer or the Commissioner (Appeals) may, on an application made by such person, extend the period of ten days by a further period not exceeding thirty days.
Section 171(4) of Income Tax Act 2025
171(4) Every person referred to in sub-section (1)(b) shall furnish the information and document referred to in sub-section (1) to the authority prescribed under section 511(1), in such manner, on or before such date, as prescribed.
Section 171(5) of Income Tax Act 2025
171(5) In this section,—
- (a) “constituent entity” shall have the meaning assigned to it in section 511 (10)(d);
- (b) “international group” shall have the meaning assigned to it in section 511 (10)(g).
FAQs on Section 171 of Income Tax Act 2025
Who is required to maintain information and documents under section 171(1)?
Any person who has entered into an international transaction or a specified domestic transaction, or is a constituent entity of an international group.
What kind of information and documents need to be maintained?
The prescribed information and documentation related to international or specified domestic transactions, as may be specified in the rules.
How long should the information and documents be maintained?
They must be kept for the period and in the manner as may be prescribed under the rules framed under this Act.
Who can require the furnishing of such information or documents?
The Assessing Officer or the Commissioner (Appeals) may require the person to furnish such information or documents.
What is the time limit to furnish documents when demanded during proceedings?
The person must furnish the documents within ten days from the date of receipt of the notice.
Can the time limit of ten days be extended?
Yes, on application by the person, the Assessing Officer or Commissioner (Appeals) may extend it by up to thirty more days.
Are there any specific obligations for constituent entities of an international group?
Yes, they must furnish prescribed information and documents to the authority mentioned under section 511(1) in the prescribed manner and by the prescribed date.
What is meant by a ‘constituent entity’?
“Constituent entity” is defined under section 511(10)(d) of the Act.
What is meant by an ‘international group’?
“International group” is defined under section 511(10)(g) of the Act.
Is it necessary to comply even if no notice is received?
Yes, maintenance of documents is mandatory regardless of whether a notice is received. Furnishing is required upon notice or as otherwise prescribed.
What happens if the person fails to maintain or furnish such documents?
While section 171 does not mention penalties, non-compliance may attract consequences under other provisions of the Act.
Does section 171 apply to all transactions?
No, it applies specifically to international transactions, specified domestic transactions, and entities forming part of an international group.
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