Draft Rule 83 of the Income-tax Rules, 2026 prescribes the time limit for repatriation of excess money under section 170(2) and the method for computing imputed interest income under section 170(4) in cases of secondary adjustments. The rule mandates that excess money arising from primary transfer pricing adjustments must be repatriated within 90 days from specified trigger dates, depending on the nature of the adjustment. These include cases where adjustments are made suo motu in the return of income, accepted pursuant to an order of the Assessing Officer or appellate authority, determined under an advance pricing agreement (whether entered before or after the due date of filing return), exercised under safe harbour rules, or finalized through a mutual agreement procedure under a Double Taxation Avoidance Agreement. If the excess money is not repatriated within the prescribed 90-day period, imputed interest is computed on a per annum basis. For transactions denominated in Indian rupees, the rate is the one-year marginal cost of funds lending rate of the State Bank of India as on 1 April of the relevant tax year plus 325 basis points. For foreign currency transactions, the applicable rate is the reference rate defined in rule 89(3) as on 30 September of the relevant tax year plus 300 basis points. Interest is chargeable from the relevant trigger date, and foreign currency transactions must be converted into Indian rupees using the telegraphic transfer buying rate on the last day of the tax year, as defined in rule 207.
Extract of Rule No. 83 of Draft Income-tax Rules, 2026
Rule 83
Time period for repatriation of excess money under section 170(2) and computation of interest income under section 170(4) pursuant to secondary adjustments.
(1) For the purposes of section 170(2)(b), the time limit for repatriation of excess money or part thereof in the circumstances mentioned in Column B of the table below shall be on or before 90 days from the date mentioned in Column C thereof:
TABLE
| Sl. No. | Circumstances | Date |
| A | B | C |
| 1 | Primary adjustments to transfer price have been made Suo motu by the assesses in his return of income | Due date of furnishing of return under section 263(1) |
| 2 | Primary adjustments to transfer price as determined in the order of Assessing Officer or the appellate authority has been accepted by the assesses | Date of the order of Assessing Officer or the appellate authority, as the case may be |
| 3 | Primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assesses under section 168 in respect of a tax year on or before the due date of furnishing of return for the relevant tax year | Due date of furnishing of return under section 263(1) |
| 4 | Primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assesses under section 168 in respect of a tax year after the due date of furnishing of return for the relevant tax year | End of the month in which the advance pricing agreement has been entered into |
| 5 | Option is exercised by the assesses as per the safe harbour rules under section 167 | Due date of furnishing of return under section 263(1) |
| 6 | Primary adjustment to transfer price is determined by the resolution arrived at under mutual agreement procedure under a Double Taxation Avoidance Agreement entered into under section 159 (1) or section 159(2) | Date of order giving effect under rule 121(10) to such resolution. |
(2) The imputed per annum interest income on excess money or part thereof which is not repatriated within the time limit as per sub-rule (1) shall be computed, —
(a) at the one-year marginal cost of fund lending rate of State Bank of India as on 1st of April of the relevant tax year plus 325 basis points in the cases where the international transaction is denominated in Indian rupee; or
(b) at the reference rate of the relevant foreign currency, as defined in rule 89(3), as on 30th September of the relevant tax year plus 300 basis points in the cases where the international transaction is denominated in foreign currency.
(3) The interest referred to in sub-rule (2) shall be chargeable on excess money or part thereof which is not repatriated in cases referred to in Column B of the table in sub-rule (1) from the date mentioned in Column C thereof.
(4) For this rule, the exchange rate for conversion of the value of international transactions denominated in foreign currency into Indian rupees shall be the telegraphic transfer buying rate of such currency on the last day of the tax year in which the transaction was undertaken and the “telegraphic transfer buying rate” shall have the same meaning as assigned to in rule 207.
