Budget 2024-25: New Rules for Transfer Pricing of Domestic Transactions

The 2024-25 budget introduces amendments to transfer pricing rules for specified domestic transactions (SDTs). Section 92CA now allows Transfer Pricing Officers (TPOs) to determine the Arm's Length Price (ALP) for SDTs not referred by the Assessing Officer (AO) or unreported in the audit report under section 92E. Previously, TPOs could only handle unreported international transactions. These changes, effective from April 1, 2025, will apply to the assessment year 2025-26 onwards, ensuring comprehensive coverage of SDTs in transfer pricing regulations.