Rule 10TIA - Safe Harbour - Income-tax Rules, 1962

1 [ Safe Harbour . 10TIA. (1) The income-tax authorities shall accept the option for safe harbour exercised by an eligible assessee in any relevant previous year under rule 10TIB, where the income declared by such assessee from an eligible business is in accordance with the circumstances as specified in sub-rule (2), unless such safe harbour is declared invalid under the provisions of sub-rule (3) of rule 10TIB. (2) The circumstances referred to in sub-rule (1) in respect of the eligible business mentioned in column (1) of the Table below shall be as specified in column (2) thereof, namely: TABLE Eligible business Circumstances (1) (2) Selling of raw diamonds referred to in clause (b) of rule 10TI. The profits and gains of the eligible business chargeable to tax under the head Profits and gains of business or profession shall be 4 per cent. or more of the gross receipts from such business. (3) Where the eligible assessee has exercised the option for safe harbour under rule 10TIB in respect of the eligible business in any relevant previous year and such option is not declared invalid under the said rule, (a) any deduction allowable under the provisions of sections 30 to 38 shall be deemed to have been already given full effect to and no further deduction under those sections shall be allowed; (b) the written down value of any asset of such business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for such previous year; (c) no set off of unabsorbed depreciation under sub-section (2) of section 32 or carried forward loss under sub-section (1) of section 72 shall be allowed to such assessee; and (d) no set off of loss from other business under sub-section (1) of section 70 or other head under sub-section (1) or sub-section (2) of section 71 shall be allowed to such assessee for income chargeable to tax under the head Profits and gains of business or profession in respect of such business. (4) The provisions of sections 92D and 92E shall apply in respect of an international transaction, if the eligible assessee enters into such transaction while carrying on the eligible business. Explanation . For the purposes of this sub-rule, international transaction shall have the same meaning as assigned to in section 92B. ] **************** NOTES:- 1. Inserted vide Notification No. 124/2024 dated 29-11-2024 w.e.f. 29-11-2024