Budget 2025-26: Govt may clarify transfer pricing changes in 3 months

Transfer pricing refers to the actual price charged in transactions between related entities within the same multinational firm

The government will issue clarifications within three months regarding the proposed changes to transfer pricing regulations as introduced in the 2025-26 Union Budget, a senior official has said.

 

To ease the compliance burden on multinational companies, the Budget has introduced a block assessment mechanism for transfer pricing, ensuring tax stability for three years in line with global best practices. Under this approach, a predetermined Arm’s Length Price (ALP) will remain applicable for an additional two years for similar transactions, simplifying the process for businesses. 

 

Transfer pricing refers to the actual price charged in transactions between related entities within the same