The Central Board of direct taxes has issued the Income-tax (9th Amendment) Rules, 2020. As per the amendment, the option for safe harbor provided under Rule 10TD of the Income-tax Rules, 1962, shall be invoked for international transactions for the assessment year 2020-21.
The Rule 10DE provides that the option for safe harbor validly exercised shall continue to remain in force for the period specified in Form 3CEFA or a period of five years whichever is less. The Rule 10DE and Form 3CEFA is also amended to exempt the option for safe harbor invoked for international transactions for the assessment year 2020-21.
The amendment shall be deemed to have come into force from the 1st day of April, 2020.
Click here to read the amendment.
