Section 92CB of Income Tax Act for AY 2023-24

Section 92CB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Power of Board to make safe harbour rules.

Amended and updated notes on section 92CB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Power of Board to make safe harbour rules.

Chapter X (Sections 92 to 94B) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to avoidance of tax. Section 92CB of IT Act 1961-2023 provides for reference to Power of Board to make safe harbour rules.

Recently, we have discussed in detail section 92CA (Reference to Transfer Pricing Officer) of IT Act 1961. Today, we learn the provisions of section 92CB of Income-tax Act 1961. The amended provision of section 92CB is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 92CB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-92CB: Power of Board to make safe harbour rules

Section 92CB(1) of Income Tax Act

The determination of—

  • (a) income referred to in clause (i) of sub-section (1) of section 9; or
  • (b) arm’s length price under section 92C or section 92CA,

shall be subject to safe harbour rules.

[Sub-section(1) of section 92CB amended w.e.f. 01.04.2020 by the Finance Act 2020]

Section 92CB(2) of Income Tax Act

The Board may, for the purposes of sub-section (1), make rules for safe harbour.

Explanation: For the purposes of this section, “safe harbour” means circumstances in which the income-tax authorities shall accept the transfer price or income, deemed to accrue or arise under clause (i) of sub-section (1) of section 9, as the case may be, declared by the assessee.

[Explanation of sub-section(2) of section 92CB amended w.e.f. 01.04.2020 by the Finance Act 2020]


Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More