Form 46 Income Tax Rules 2026 pdf download and Key points
FORM NO. 46
[See rule 82(1)]
Exercise of option for determination of arm‘s length price (ALP) under section 166(9)
Under the Income-tax Rules, 2026, Form No. 46 is a newly introduced form (with no equivalent under the old 1961 rules) governed by Section 166(9) of the Income-tax Act, 2025, and Rule 82 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 46:
1. Purpose and Applicability Form 46 is filed by an assessee to exercise an option for the determination of the Arm’s Length Price (ALP) in respect of international transactions or specified domestic transactions. Specifically, it allows taxpayers to consolidate this determination for multiple years into a single proceeding for two consecutive tax years (the second and third tax years) immediately following the initial tax year (the first tax year) in which a reference was made to the Transfer Pricing Officer under Section 166.
2. Due Date Form 46 has a very specific filing window. It must be furnished within the period beginning from the end of the third tax year and ending on the 30th day of June succeeding the third tax year.
- Example: If the first tax year is 2026-27, the second tax year is 2027-28, and the third tax year is 2028-29. The assessee must furnish Form 46 by 30th June, 2029.
3. Mode of Filing and Multiplicity
- Online Only: The form can only be submitted electronically through the Income Tax e-Filing portal; offline submission is not permitted.
- Multiple Filings: An assessee is permitted to furnish more than one Form No. 46 if required.
4. Structure of the Form The form is divided into two main sections:
- Part A (Particulars of the Person): Captures general information about the taxpayer, including Name, Address, Permanent Account Number (PAN), E-mail ID, and Contact Number.
- Part B (Other Information): Captures specific details for the ALP determination, including:
- The initial Tax Year for which the reference was made under section 166(1).
- The subsequent Tax Years for which the option is being exercised.
- The dates of furnishing Income Tax Returns (ITRs) and Form No. 48.
- Detailed particulars of the transactions for which the ALP determination is to be carried out.
5. Mandatory Attachments and Form 47 Linkage While no physical documents are required to be directly uploaded or filed with Form 46 itself, it carries a strict condition: Form 46 must be accompanied by a certificate from an accountant in Form No. 47. Form 47 certifies that the assessee has fulfilled all the conditions prescribed under Rule 82 for exercising this option.