Daily Archives: March 31, 2026

Section 173 Income Tax Act 2025 Definitions of certain terms relevant to determination of arm’s length price, etc. 19 173. 18 For the purposes of this section and sections 161, 162, 163, 165, 171 and 172, unless the context otherwise requires,— (a) “arm’s length price” means a price which is applied or proposed to be applied in a transaction between persons other than associated enterprises, in… Read More »

Section 174 Income Tax Act 2025 Avoidance of income-tax by transactions resulting in transfer of income to non-residents. 174.(1) Where there is a transfer of assets before and after the commencement of this Act, and by virtue or in consequence of it,— (a) either alone; or (b) in conjunction with associated operations, any income becomes payable… Read More »

Section 175 Income Tax Act 2025 Avoidance of tax by certain transactions in securities. 175. (1) Where the owner of any securities (herein referred to as “the owner”) sells or transfers such securities and buys back or reacquires them or buys or acquires any similar securities, any interest that becomes payable in respect of such securities,— (a)… Read More »

Section 176 Income Tax Act 2025 Special measures in respect of transactions with persons located in notified jurisdictional area. 176. 31 (1) The Central Government may, by notification specify any country or territory outside India, as a notified jurisdictional area in relation to transactions entered into by any assessee, having regard to the lack of effective exchange… Read More »

Section 177 Income Tax Act 2025 Limitation on interest deduction in certain cases. 177. (1) Irrespective of anything contrary in this Act, any expenditure by way of interest or similar payment in respect of excess interest, as specified in sub-section (4), shall not be deductible in computation of income chargeable under the head “Profits and gains… Read More »

Section 178 Income Tax Act 2025 CHAPTER XI General Anti-Avoidance Rule Applicability of General Anti-Avoidance Rule. 178. (1) Irrespective of anything contained in this Act, an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and the consequence in relation to tax arising from it may be determined subject to the… Read More »

Section 179 Income Tax Act 2025 Impermissible avoidance arrangement. 36 179. 37 (1) An impermissible avoidance arrangement means an arrangement, the main purpose of which is to obtain a tax benefit, and it— (a) creates rights, or obligations, which are not ordinarily created between persons dealing at arm’s length; (b) results, directly or indirectly, in the misuse, or abuse,… Read More »

Section 180 Income Tax Act 2025 Arrangement to lack commercial substance. 180.(1) An arrangement shall be deemed to lack commercial substance, if— (a) the substance or effect of the arrangement as a whole, is inconsistent with, or differs significantly from, the form of its individual steps or a part; or (b) it involves or includes— (i)… Read More »