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

Meridian Components Pvt Ltd is an Indian concern. Shares of its foreign parent were transferred during a financial year, and the transfer has the effect of directly or indirectly transferring the rights of management or control in relation to the Indian concern. Under Rule 235 of the Income-tax Rules, 2026, in which form and within what period from that transaction must the Indian concern furnish the information?

The Indian concern must furnish the information in Form No. 163, electronically under digital signature, within ninety days of the transaction, because the transfer carries management or control of the Indian concern. The general ninety days from the financial year end applies to other transfers.

  1. AForm No. 163, within ninety days of that transactionCorrect
  2. BForm No. 163, within thirty days of that transaction
  3. CForm No. 163, within ninety days from the end of the next financial year
  4. DA paper statement in any format, within one hundred and eighty days of that transaction

Explanation

Rule 235(2) requires the information in Form No. 163, electronically under digital signature, to the Assessing Officer. Where the transfer has the effect of transferring management or control, it must be furnished within ninety days of that transaction. The thirty-day option and the next-year option do not appear in the rule.

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