Section-167: Power of Board to make safe harbour rules

Section-167 : Power of Board to make safe harbour rules

Section-167 provides for power of Board to make safe harbour rules to simplify compliance and reduce litigation Learn to understand the section-167 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-167 as per act

The determination of—
1. income referred to in section 9(2); or
2. arm’s length price under section 165 or 166,
shall be subject to safe harbour rules.
For the purposes of sub-section (1), the Board may make rules for safe harbour.
In this section, “safe harbour” means circumstances in which the incometax authorities shall accept,––
1. the transfer price; or
2. the income, deemed to accrue or arise under section 9(2), declared by the assessee.