Indian income tax | Transfer pricing

Section 92D: Transfer Pricing Documentation and Record-Keeping Requirements

Section 92D of the Income-tax Act, 1961 prescribed the maintenance, retention and furnishing of transfer pricing information for international transactions and specified domestic transactions. Its corresponding provision in the Income-tax Act, 2025 is Section 171.

Legislative transition: The Income-tax Act, 2025 applies from 1 April 2026. Section 92D remains relevant to earlier years and proceedings governed by the 1961 Act. For current-year compliance, read Section 171 and the applicable rules and notifications for the relevant tax year.

In this article

Section 92D explained
Records under Rule 10D
Master file and international groups
Deadlines and retention
Penalties and compliance
Official sources

Meaning and scope of Section 92D

The provision requires prescribed documentation from persons undertaking international transactions or specified domestic transactions. An international transaction generally involves associated enterprises, either or both of which are non-residents, and falls within the definition in Section 92B. A specified domestic transaction is defined in Section 92BA, subject to its statutory scope and threshold.

Subsection-by-subsection explanation

Section 92D(1)(i): persons entering international or specified domestic transactions must keep and maintain the information and documents prescribed for those transactions.
Section 92D(1)(ii): constituent entities of an international group must maintain prescribed group-level information, subject to applicable conditions. The terms constituent entity and international group are linked to the definitions in Section 286(9).
Section 92D(2): empowers the Central Board of Direct Taxes (CBDT) to prescribe the retention period.
Section 92D(3): permits the Assessing Officer or Commissioner (Appeals) to require relevant documentation during proceedings, within the statutory response period.
Section 92D(4): provides for furnishing prescribed international-group documentation to the designated authority, in the prescribed manner and by the prescribed date.

Information and documents under Rule 10D

Rule 10D of the Income-tax Rules, 1962 sets out the traditional local transfer pricing documentation framework. Depending on the transaction and applicable exemptions, documentation includes:

Ownership structure and details of associated enterprises.
Group profile, countries of tax residence and ownership links.
Business and industry descriptions for the taxpayer and related enterprises.
Nature, terms, quantity and value of controlled transactions.
Functions performed, assets employed and risks assumed by the parties (FAR analysis).
Economic and market analysis relevant to pricing.
Comparable uncontrolled transactions and comparability adjustments.
Methods considered, the most appropriate method selected and reasons for selection.
Arm's length price calculations, financial data, assumptions and adjustments.
Agreements, invoices, financial statements, market studies and other supporting records.

The pricing methodology should align with Section 92C and the applicable transfer pricing rules. Documentation should be prepared contemporaneously rather than first assembled after receiving a tax notice.

Small-value international transactions: Under Rule 10D(2), the detailed Rule 10D(1) documentation requirement is generally relaxed where the aggregate book value of international transactions does not exceed Rs. 1 crore. This is not an exemption from the arm's length principle or from substantiating pricing when required.

Master file requirements for international groups

Section 92D also covers constituent entities of multinational groups. Under the 1962 Rules framework, Rule 10DA addresses master-file information and furnishing requirements. The prescribed thresholds generally consider consolidated group revenue above Rs. 500 crore together with international transactions above Rs. 50 crore, or specified intangible-property transactions above Rs. 10 crore. Certain basic disclosures can apply independently of these thresholds.

The historical forms include Form 3CEAA for master-file information and Form 3CEAB for designating the reporting entity where applicable. Country-by-country reporting under Section 286 is a separate but related compliance framework. Check the forms and thresholds prescribed for the tax year concerned before filing under the 2025 Act regime.

Notice deadlines and record retention

Requirement	Position under the amended 1961 Act framework
Furnishing records after a notice	Within 10 days of receipt under Section 92D(3).
Extension on application	Up to a further 30 days, subject to approval by the relevant authority.
Rule 10D document retention	8 years from the end of the relevant assessment year.
Master-file records under Rule 10DA	Generally 8 years from the end of the relevant assessment year.
Annual updates	Review material changes to transactions, assumptions, functions, risks and comparables.

Important amendment: The Finance Act, 2023 shortened the original 30-day period for furnishing documents on notice to 10 days, while retaining the possibility of a further 30-day extension. Older reproductions of Section 92D showing 30 days as the initial period are outdated.

Non-compliance, reporting and practical checklist

Under the 1961 Act, Section 271AA provides for penalties for certain failures to maintain, report or accurately furnish prescribed transfer pricing information, including a penalty linked to 2% of the value of each relevant transaction in specified cases. Section 271G addresses failure to furnish information or documents when required, while Section 92E separately requires an accountant's report for covered transactions. The application of penalties depends on the relevant year, facts, statutory conditions and available relief.

Practical documentation checklist

Identify all associated enterprises and covered transactions, including deemed international transactions.
Confirm whether specified domestic transaction and master-file thresholds apply.
Prepare transaction agreements, FAR analysis, benchmark searches and pricing workings.
Retain evidence of actual services, deliveries, invoices, payments and business benefits.
Track applicable accountant's report and master-file filing requirements.
Keep records for the prescribed period and respond promptly to notices.

Illustration

An Indian company pays its overseas associated enterprise for software development services. Its records should support the services received, commercial terms, allocation of functions and risks, chosen transfer pricing method and comparable pricing. If the tax authority issues a valid documentation notice, the company must provide the relevant prescribed records within the applicable statutory time limit.

Official legislation and guidance

For authoritative and updated statutory text, consult the following government resources:

Income Tax Department - Transfer Pricing Guide, including Rule 10D and Rule 10DA documentation.
Income Tax Department - Section 92D statutory archive (verify the amendment date of any historical version).
Income Tax Department - 1961 to 2025 section mapping, showing Section 92D corresponding to Section 171.
Income Tax Department official portal for the 2025 Act, current rules, forms and notifications.

This article is a general explanation of the statutory framework. Requirements, forms and thresholds must be checked against the law applicable to the relevant tax year and transaction.