Section 92CB → Section 185
Power of Board to make safe harbour rules
Quick Answer
Section 92CB of the Income Tax Act, 1961 (Power of Board to make safe harbour rules) corresponds to Section 185 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 92CB
In the 1961 statute, Section 92CB deals with power of board to make safe harbour rules. Allows CBDT to declare safe harbour rules (acceptable profit margins) to avoid lengthy TP litigation.
The new code maps this to Section 185: the provision is retained and renumbered as Section 185 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Focus is on expanding safe harbours for IT/ITES and routine BPO services to reduce compliance burden.
On the ground, changes to Section 92CB carry a Medium impact. Provides massive relief and certainty to mid-sized IT exporters.
Sec 92CB
Provision Summary
Allows CBDT to declare safe harbour rules (acceptable profit margins) to avoid lengthy TP litigation.
Sec 185
Provision Summary
Retained. Focus is on expanding safe harbours for IT/ITES and routine BPO services to reduce compliance burden.
Key Changes & Highlights
- Rules updated dynamically based on real-time global economic data.
Frequently Asked Questions
What does Section 92CB of the Income Tax Act 1961 deal with?
Section 92CB of the Income Tax Act, 1961 covers power of board to make safe harbour rules. Allows CBDT to declare safe harbour rules (acceptable profit margins) to avoid lengthy TP litigation.
Where does Section 92CB of the ITA 1961 go under the Income-tax Act, 2025?
Section 92CB of the Income Tax Act, 1961 maps to Section 185 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Focus is on expanding safe harbours for IT/ITES and routine BPO services to reduce compliance burden.
Why does the change to Section 92CB matter for taxpayers?
The transition impact for Section 92CB is rated Medium. Provides massive relief and certainty to mid-sized IT exporters.
What are the key changes to Section 92CB under the Income-tax Act, 2025?
Rules updated dynamically based on real-time global economic data. These points are specific to Section 92CB (Power of Board to make safe harbour rules).
Disclaimer: This mapping of Section 92CB (Power of Board to make safe harbour rules) to Section 185 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 92CB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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