 "transfer pricing provisions, associated enterprise definition, draft Income Tax Bill 2025, beneficial ownership tax rule, intra-group transactions India, house property income taxation, pre-construction interest deduction, Income Tax Act associated e")
In a move that could have far-reaching repercussions on the corporate landscape, the proposed new Income Tax (I-T) law could bring inter-corporate transactions under transfer pricing scrutiny if the tax department considers one of the firms to have a substantive influence on another even if thresholds pertaining to shareholding or board control are not triggered.
This is a key recommendation made by the Lok Sabha’s select committee in its report on the draft Income Tax Bill, 2025, tabled in Parliament on Monday.
Transfer pricing refers to tax rules that regulate the pricing of transactions between related or associated enterprises —
