ICAI Releases New Guidance Note on Section 92E Transfer Pricing Report:

The Institute of Chartered Accountants of India (ICAI) has issued a new Guidance Note for reporting under Section 92E of the Income-tax Act, 1961. The guidance is to help accountants understand and meet their obligations in preparing the required transfer pricing report.

The Guidance Note is based on the provisions of the Income-tax Act, 1961, applicable up to Assessment Year 2026-27. It will also apply to assessments, appeals and other related proceedings for these years, even if they take place after that period.

The main purpose of the Guidance Note is to make it easier for accountants to understand what is expected from them while issuing the Section 92E report. It explains the separate responsibilities of the taxpayer and the accountant and provides guidance on the information that accountants should obtain from taxpayers.

The note also describes the verification procedures to be followed by the accountants before issuing the report and filling up the annexure thereto. It also explains when an accountant might need to make a disclosure, qualification or disclaimer in the report.

Overall, the Guidance Note of ICAI is expected to provide a simple and convenient framework to the accountants for discharge of their duties under Section 92E and for ensuring proper scrutiny and reporting of the required transfer pricing information.