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

Deccan Components Pvt Ltd, an Indian concern, is informed that a foreign holding entity has transferred shares of a foreign company that holds assets in India through Deccan. The transfer took place during a financial year and did not transfer management or control of Deccan. Under Rule 235 of the Income-tax Rules, 2026, within what period from the end of that financial year must Form No. 163 be furnished to the Assessing Officer?

Form No. 163 must be furnished within ninety days from the end of the financial year in which the transfer of the foreign entity's shares or interest took place, because no transfer of management or control is involved. The ninety-day period from the transaction itself applies only to control transfers.

  1. AThirty days
  2. BSixty days
  3. CNinety daysCorrect
  4. DOne hundred and eighty days

Explanation

Rule 235(2) requires the information in Form No. 163, electronically under digital signature, within ninety days from the end of the financial year in which the transfer took place. The shorter ninety-days-from-transaction rule applies only where the transfer also transfers management or control, which is not so here. Thirty, sixty and 180 days are not the prescribed periods.

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