Sections 90, 92 to 92F, 195 of the Income Tax Act, 2025 (formerly 1961 Act) & OECD BEPS Standards

International Tax & Transfer Pricing

Cross-border transaction advisory, Double Taxation Avoidance Agreements (DTAA), Form 15CA/15CB certifications, foreign remittances, and Transfer Pricing compliance under the Income-tax Act, 2025 and transition provisions of the Income-tax Act, 1961.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

International Tax & Transfer Pricing Statutory Advisory

Turnkey Statutory Filing

MCA & Tax Practice

Official Govt of India AuthorityCentral Board of Direct Taxes (CBDT), Ministry of Finance, Govt of India

Income Tax e-Filing Official Portal

The official CBDT portal for electronic Form 15CA/15CB remittances, electronic Form 10F filing, Form 3CEB transfer pricing certifications, and non-resident tax return processing.

Visit Govt Portal

STATUTORY OVERVIEW

Cross-Border Taxation, DTAA & Transfer Pricing

Cross-border payments, international holding structures, and inter-company transactions are subject to rigorous statutory scrutiny under the Income-tax Act, 2025 alongside continuing transitional provisions of the Income-tax Act, 1961. Our international tax and transfer pricing practice assists domestic companies, multinationals, Non-Resident Indians (NRIs), and expatriates in interpreting Double Taxation Avoidance Agreements (DTAA), determining non-resident withholding obligations under statutory provisions (formerly Section 195 of the Income-tax Act, 1961), obtaining Form 15CB certifications, and compiling transfer pricing documentation in accordance with Indian tax statutes and OECD BEPS principles.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Sections 90, 92 to 92F, 195 of the Income Tax Act, 2025 (formerly 1961 Act) & OECD BEPS Standards

Regulatory Authority

Central Board of Direct Taxes (CBDT), Ministry of Finance, Govt of India

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓PAN Card of the Indian Remitter / Associated Enterprise
✓Tax Identification Number (TIN) / Foreign Tax ID of the Non-Resident Beneficiary
✓Tax Residency Certificate (TRC) issued by the revenue authority of the foreign beneficiary's home country
✓Form 10F electronically filed with DSC on the Income Tax e-filing portal
✓No Permanent Establishment (No-PE) certificate and beneficial ownership declaration

2. Registered Office & Premises Proof

✓Authorized Dealer (AD) Bank branch details and remittance purpose code (RBI Category)
✓Proforma Invoice / Commercial Contract and scope of work documentation

3. Specific Statutory Declarations & Enclosures

•Audited Financial Statements of both Indian entity and foreign Associated Enterprise (AE)
•Inter-company Master Services Agreement (MSA), IP Licensing Agreement, or Cost Sharing Agreement
•Transfer Pricing Study Report with economic benchmarking using Prowess / Capitaline databases
•Accountant's Report in Form 3CEB certified by a practicing Chartered Accountant
•Lower Deduction Certificate under Section 197 (if applicable for non-resident property sale)

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Day 1–2

Treaty Analysis & Withholding Tax Assessment

Examining DTAA articles (Royalty, FTS, Capital Gains, Business Profits) and verifying TRC & Form 10F validity.

02Day 2–3

Form 15CB CA Audit & 15CA Filing

Conducting CA scrutiny of invoice, issuing Form 15CB with UDIN, and generating Form 15CA Part C acknowledgment.

03Month 1–2

Arm's Length Benchmarking & TP Study

Selecting most appropriate method (TNMM, CUP), running database filters, and establishing arm's length price range.

04By Oct 31st

Form 3CEB Certification & E-Filing

Electronic signing and filing of Form 3CEB on the CBDT portal, fulfilling mandatory transfer pricing compliance.

Double Taxation Avoidance Agreements (DTAA) & Treaty Relief

Non-resident income generated from sources in India is taxable under the scope of total income provisions of the Income-tax Act, 2025 (formerly Sections 5 and 9 of the Income-tax Act, 1961), subject to beneficial provisions under applicable Double Taxation Avoidance Agreements (formerly Sections 90 and 90A of the Income-tax Act, 1961). Claiming treaty benefits—such as reduced withholding rates on royalties, Fees for Technical Services (FTS), dividends, and capital gains—requires strict statutory documentation.

Non-Resident Withholding (formerly Section 195)

Overseas Payments

Statutory determination of taxability, applicable DTAA treaty rates, surcharge, and health & education cess on cross-border transactions.

Form 15CA & 15CB Certification

Remittance Assurance

Chartered Accountant examination of invoices, contracts, and tax residency proofs, and issuance of statutory Form 15CB along with Form 15CA e-filing prior to bank remittance.

Verification of Tax Residency Certificate (TRC) issued by the tax administration of the recipient's home country

Mandatory electronic filing of Form 10F on the Income Tax e-filing portal with digital signatures

No-Permanent Establishment (No-PE) certificate and beneficial ownership declarations

Principal Purpose Test (PPT) and Limitation of Benefits (LOB) clause analysis under the Multilateral Instrument (MLI)

Transfer Pricing Documentation & Form 3CEB Certification

Under the transfer pricing provisions of the Income-tax Act, 2025 (formerly Sections 92 to 92F of the Income-tax Act, 1961), any international transaction or Specified Domestic Transaction (SDT) between Associated Enterprises (AEs) must be computed having regard to the Arm's Length Price (ALP). Entities engaged in cross-border trade, software exports, management services, IP licensing, and intra-group financing must maintain three-tiered documentation (Local File, Master File, and CbCR) and file a statutory accountant's report in Form 3CEB.

Selection of the most appropriate method: Comparable Uncontrolled Price (CUP), Transactional Net Margin Method (TNMM), Cost Plus Method, or Resale Price Method

Economic benchmarking using authorized databases (Prowess, Capitaline) and comparative profitability margins

Preparation of Transfer Pricing study reports and contemporaneous audit documentation under statutory rules (formerly Rule 10D)

Statutory certification and electronic submission of Form 3CEB signed by a practicing Chartered Accountant by October 31st

NRI Taxation, FEMA Compliance & Foreign Assets Disclosure

Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) managing investments, real estate disposals, inherited assets, or repatriating funds face dual-layer compliance under direct tax law and the Foreign Exchange Management Act (FEMA). In addition, resident individuals possessing offshore shares, bank accounts, or ESOPs must ensure accurate reporting in Schedule FA (Foreign Assets) of their ITR to remain fully compliant with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Lower TDS Certificates (formerly Section 197)

NRI Real Estate

Filing applications for Lower / Nil TDS deduction certificates (formerly Section 197 of the Income-tax Act, 1961) for sale of immovable properties by non-residents.

Schedule FA Disclosures

Resident Global Assets

Reporting of offshore bank accounts, foreign direct equity, mutual funds, and trust beneficiaries in compliance with statutory transparency requirements.

International Taxation Matrix: Income Tax Act, 2025 vs Income Tax Act, 1961

Cross-border transactions and multinational operations require precise understanding of the statutory mappings between the Income Tax Act, 2025 and the predecessor Income Tax Act, 1961.

The following matrix outlines the governing sections, compliance rules, and strategic cross-border tax benefits across both legislative frameworks:

International Tax Parameter	Governing Section: New Act 2025 (Old Act 1961)	Statutory Rule & Cross-Border Benefit
DTAA Double Tax Avoidance Relief	Treaty Relief Provisions, 2025 Act (formerly Section 90 / 90A of 1961 Act)	Assessee can elect either the Income Tax Act provisions or the beneficial provisions of the applicable bilateral DTAA treaty, whichever is more beneficial.
Non-Resident Withholding (TDS)	Withholding Tax Provisions, 2025 Act (formerly Section 195 of 1961 Act)	Mandatory tax deduction at source on payments to non-residents; reduced withholding rates available upon production of valid TRC and electronic Form 10F.
Form 15CB CA Certification	Remittance Certification Rules (formerly Section 195(6) of 1961 Act)	Statutory certificate issued by a practicing Chartered Accountant confirming nature of remittance, tax deductibility, and treaty compliance.
Transfer Pricing Arm's Length Price	Transfer Pricing Chapter, 2025 Act (formerly Sections 92 to 92F of 1961 Act)	Mandatory benchmark pricing for transactions between associated enterprises, with 3% tolerance band and Form 3CEB certification.
Lower Withholding Tax Certificate	Lower TDS Provisions, 2025 Act (formerly Section 197 of 1961 Act)	Enables non-resident sellers of Indian real estate to obtain specific AO orders for lower withholding (e.g. 3%-5% instead of 20%+ surcharge).
Foreign Asset Transparency	Schedule FA Mandate & Black Money Act, 2015 Provisions	Mandatory disclosure of overseas bank accounts, financial assets, foreign trusts, and custodial accounts by resident assessees.

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

Form 15CA & Form 15CBBefore Overseas Payment

Form 15CA & 15CB Prior to Remittance

Mandatory CA certification and e-filing prior to executing any foreign outward remittance through AD banking channels.

Form 3CEBBy 31st October

Annual Form 3CEB Transfer Pricing Report

Statutory filing certified by a Chartered Accountant for cross-border transactions exceeding ₹1 Crore.

Rule 10D Study ReportBy Due Date of ITR Filing

Transfer Pricing Documentation (Local File)

Contemporaneous documentation detailing functional analysis (FAR), economic benchmarking, and comparability adjustments.

ITR Schedule FABy 31st July / 31st October

Schedule FA (Foreign Assets) Disclosure in ITR

Mandatory reporting of offshore assets, bank accounts, and ESOPs by resident assessees under the Black Money Act.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding International Tax & Transfer Pricing.

Why is Form 15CB required before making a foreign remittance?

Under Indian tax law and RBI regulations, authorized dealer banks require assurance that appropriate tax has been deducted before funds leave the country. Form 15CB is a statutory certification issued by an independent Chartered Accountant verifying the nature of the transaction, taxability under Indian law, and applicable relief under the relevant DTAA treaty.

What is the penalty for failing to file Form 3CEB on time?

Failure to file the accountant's report in Form 3CEB by the statutory deadline of October 31st attracts a mandatory penalty under statutory provisions (formerly Section 271BA of the Income-tax Act, 1961) of ₹1,00,000, in addition to interest and risk of transfer pricing adjustment penalties.

Can an NRI claim refund of TDS deducted on the sale of Indian property?

Yes. When an NRI sells Indian property, the buyer typically deducts TDS at 20% plus applicable surcharge and cess under Section 195 on the gross consideration. By filing an Indian Income Tax Return (ITR-2), the NRI can compute the actual capital gains (after deducting indexed cost of acquisition and claiming reinvestment exemptions under Sections 54/54EC) and claim a full refund of any excess tax deducted.

What is electronic Form 10F and who needs to file it?

Form 10F is a mandatory self-declaration required when the Tax Residency Certificate (TRC) issued by a foreign government does not contain all particulars required under Indian tax rules (such as nationality, tax identification number, period of residency, and address). Non-resident payees must file Form 10F electronically on the CBDT e-filing portal to avail DTAA treaty benefits.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

In strict conformity with ICAI Council Guidelines No. 1-CA(7)/06/2004, professional engagements for International Tax & Transfer Pricing are accepted following formal conflict verification and statutory documentation. Contact our registered practice offices for procedural guidance.

Contact Practice Office +91 99140-14949