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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Ashoka Traders Ltd, an Indian concern, transferred-share information filed under Rule 235 of the Income-tax Rules, 2026 for a transfer in the tax year ending 31 March 2027. For how long must it keep the documents listed in Rule 235(3)?

The documents must be maintained for eight years from the end of the relevant tax year. The period is counted from the tax year end, not from the date of filing the form or the date of the share transfer.

  1. AEight years from the end of the relevant tax yearCorrect
  2. BSix years from the end of the relevant tax year
  3. CEight years from the date of filing Form No. 163
  4. DTen years from the date of transfer

Explanation

Rule 235(7) requires the information and documents in sub-rule (3) to be kept for eight years from the end of the relevant tax year. The period runs from the tax year end, not from filing or the transfer date, so the filing-date option is wrong.

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