Amendments in the Safe Harbour Rules

CBDT notifies amendments in Income-tax Rules, 1962 to expand the scope of safe harbour rules.

G.S.R. 193(E).—In exercise of the powers conferred by section 295 read with sub-section (2) of section 92CB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2025.
   (2) They shall come into force on the date of their publication in the Official Gazette.
   
2. In the Income-tax Rules, 1962,–
   
   (a) in rule 10TA, in clause (b),–
   
   I. in sub-clause (iii), at the end, the word “or” shall be inserted;
   
   II. after sub-clause (iii), the following sub-clause shall be inserted, namely:–
   “(iv) lithium ion batteries for use in electric or hybrid electric vehicles.”;
   
   (b) in rule 10TD,—
   
   I. in sub-rule (2A), in the Table,—
   (A) in Sl.No. 1, in column number (3), in clause (ii), for the word “two”, the word “three” shall be substituted;
   (B) in Sl.No. 2, in column number (3), in clause (ii), for the word “two”, the word “three” shall be
   substituted;
   (C) in Sl.No. 3, in column number (3), in the opening portion, for the word “two”, the word “three”
   shall be substituted;
   (D) in Sl.No. 7, in column number (3), for the word “two”, the word “three” shall be substituted;
   (E) in Sl.No. 8, in column number (3), for the word “two”, the word “three” shall be substituted;
   
   II. in sub-rule (3B), for the words and figures “assessment years 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25”, the words and figures “assessment years 2020-21, 2021-22, 2022-23, 2023-24, 2024-
   25, 2025-26 and 2026-27″ shall be substituted;
   
   (c) in rule 10TE, in sub-rule (2), in the fourth proviso, after the word, figures and letters “rule 10TD”, the words “for one assessment year” shall be inserted.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification number G.S.R. 145(E) dated the 24th February, 2025.

SUMMARY

1. Amendments to the Income-tax Rules, 1962
   (a) Rule 10TA (Definition Amendments)
   • Lithium-ion batteries used in electric or hybrid vehicles are now included in the scope of Rule 10TA.
   (b) Rule 10TD (Safe Harbour Rules Amendments)
   • The threshold value in column (3) of multiple entries (Sl. No. 1, 2, 3, 7, 8) has been revised by replacing “two” with “three.”
   • The applicability of sub-rule (3B) is extended to assessment years 2025-26 and 2026-27 in addition to previous years.
   (c) Rule 10TE (Procedure Amendments)
   • A clarification is added to specify that Rule 10TD shall apply for one assessment year under certain conditions.

These amendments mainly expand the scope of safe harbour rules, extend their applicability, and introduce lithium-ion batteries into the definition framework.

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