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

Under Rule 235 of the Income-tax Rules, 2026, Zenith Infra Pvt Ltd, an Indian concern, furnished Form No. 163 for a transfer in the tax year ended 31 March 2027. For how long must it keep and maintain the supporting information and documents listed in sub-rule (3)?

The documents must be kept for eight years from the end of the relevant tax year, as Rule 235(7) provides. The period runs from the tax year end, not from the date of the transfer agreement, and is neither six nor ten years.

  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 the transfer agreement
  4. DTen years from the end of the relevant tax year

Explanation

Rule 235(7) requires the documents in sub-rule (3) to be kept and maintained for eight years from the end of the relevant tax year. Counting from the transfer agreement date or using six or ten years is not what the rule states.

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