Income Tax Form No. 46 has been prescribed for exercising the option for determination of arm’s length price (ALP) under section 166(9) of the Income-tax Act, 2025 . The form enables an assessee to opt for determination of ALP for international transactions or specified domestic transactions covering multiple years through a single proceeding. Specifically, the option applies to two consecutive tax years that immediately follow the tax year in which a reference has been made under section 166.
The form allows taxpayers to exercise the option for the second and third tax years following the first tax year in which the reference was initiated. For example, if the first tax year is 2026–27, the second and third tax years would be 2027–28 and 2028–29 respectively. In such a case, the assessee may furnish Form No. 46 by 30 June 2029, which is the prescribed deadline following the end of the third tax year.
Form No. 46 must be filed electronically through the Income Tax e-Filing portal and cannot be submitted offline. No documents are required to be attached with the form. However, it must be accompanied by a certificate from an accountant in Form No. 47 confirming that the conditions prescribed under Rule 82 for exercising the option have been fulfilled.
The structure of the form consists of two parts. Part A contains general information relating to the taxpayer. Part B includes details such as the tax years for which the option is exercised under section 166(9), dates of filing of income tax returns and Form 48, and information about the transactions for which determination of arm’s length price is sought.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 46: Exercise of option for determination of arm‘s length price (ALP) under section 166(9) of Income Tax Act, 2025
Exercise of option for determination of arm’s length price (ALP) under section 166(9) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | NA | Name of form as per I.T. Rules, 2026 | 46 |
| Corresponding section of I.T. Act, 1961 | 92CA(3B) | Corresponding section of I.T. Act, 2025 | 166(9) |
| Corresponding Rule of I.T. Rules, 1962 | NA | Corresponding Rule of I.T. Rules, 2026 | 82 |
Q1: What is Form No. 46?
Ans: It is a form furnished by an assessee for exercising an option or options for determination of Arm’s length price in respect of international transactions or specified domestic transactions for multiple year in a single proceeding for two consecutive tax years (the second tax year and the third tax year respectively) immediately following the tax year (the first tax year) in respect of which reference has been made in its case under section 166.
Q2: What is the time limit for filing Form No. 46?
Ans: Form No. 46 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.
For example: If the first tax year is 2026-27, second tax year is 2027-28 and third tax year is 2028- 29, the assessee can furnish Form No. 46 by 30th June, 2029.
Q3: Can Form No. 46 be filed offline?
Ans: No. Form No. 46 can only be submitted online through the Income Tax e-Filing portal.
Q4: What documents are required to file with Form No. 46?
Ans: No documents are required to be filed with Form No. 46. However, it shall be accompanied by a certificate from the accountant in Form No. 47.
Q5: Can more than one Form No. 46 be furnished.
Ans: Yes, more than one Form No. 46 can be furnished.
Guidance Note on Income Tax Form 46: Exercise of option for determination of arm‘s length price (ALP) under section 166(9) of Income Tax Act 2025
Comprehensive note on new Forms (Form No. 46 and 47)
The rule 82 for exercise of option for determination of arm’s length price (ALP) under section 166(9) of the Income-tax Act, 2025 prescribes two forms –
1. Form 46
2. Form 47
Form No. 46
Who is required to file the form?
It is a form furnished by an assessee for exercising an option or options for determination of Arm’s length price in respect of international transactions or specified domestic transactions for multiple year in a single proceeding for two consecutive tax years (the second tax year and the third tax year respectively) immediately following the tax year (the first tax year) in respect of which reference has been made in its case under section 166.
Due date:
Form No. 46 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.
For example: If the first tax year is 2026-27, second tax year is 2027-28 and third tax year is 2028-29, the assessee can furnish Form No. 46 by 30th June, 2029.
Structure of the Form No. 46
The form comprises of two parts, Part A contains general information of the taxpayer and Part B contains the following-
a) Tax years for which the option is exercised under section 166(9)
b) Dates of furnishing ITRs, and Form 48
c) Details of the transactions for which determination of ALP is to be carried out as per section 166(9)
Form No. 47
This is a certificate from an accountant, accompanying the Form No. 46, certifying the fulfilment of the conditions prescribed under the rule 82 for the option exercised by the assessee under section 166(9).
