¹[Computation of interest income pursuant to secondary adjustments.

10CB. (1) For the purposes of sub-section (2) of section 92CE of the Act, the time limit for repatriation of ²excess money or part thereof shall be on or before ninety days,—

(i) from the due date of filing of return under sub-section (1) of section 139 of the Act where primary adjustments to transfer price has been made suo-moto by the assessee in his return of income;

(ii) from the date of the order of Assessing Officer or the appellate authority, as the case may be, if the primary adjustments to transfer price as determined in the aforesaid order has been accepted by the assessee;

³(iii) in a case where primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC of the Act in respect of a previous year, - 

(a) from the date of filing of return under sub-section (1) of section 139 of the Act ifthe advance pricing agreement has been entered into on or before the due date of filing of return for the relevant previous year; 

(b) from the end of the month in which the advance pricing agreement has been entered into if the said agreement has been entered into after the due date of filing of return for the relevant previous year”;

(iv) from the due date of filing of return under sub-section (1) section 139 of the Act in the case of option exercised by the assessee as per the safe harbour rules under section 92CB;or

⁴(v) “from the date of giving effect by the Assessing Officer under rule 44H to the resolution arrived at under mutual agreement procedure, where the primary adjustment to transfer price is determined by such resolution under a Double Taxation Avoidance Agreement entered into under section 90or section 90A of the Act”;

(2) The imputed per annum interest income on ^2aexcess money or part thereof which is not repatriated within the time limit as per sub-section (1) of section 92CE of the Act shall be computed,—

(i) at the one year marginal cost of fund lending rate of State Bank of India as on 1st of April of the relevant previous year plus three hundred twenty five basis points in the cases where the international transaction is denominated in Indian rupee; or

(ii) at six month London Interbank Offered Rate as on 30th September of the relevant previous year plus three hundred basis points in the cases where the international transaction is denominated in foreign currency.

Explanation— For the purposes of this rule 

⁶(A) “International transaction” shall have the same meaning as assigned to it in section 92B of the Act.

(B) The rate of exchange for the calculation of the value in rupees of the international transaction denominated in foreign currency shall be the telegraphic transfer buying rate of such currency on the last day of the previous year in which such international transaction was undertaken andthe“telegraphic transfer buying rate” shall have the same meaning as assigned in the Explanation to rule 26.”

⁵(3) The interest referred to in sub-rule (2) shall be chargeable on excess money or part thereof which is not repatriated— 

(a) in cases referred to in clause (i), in sub-clause(a) of clause (iii) and clause (iv) of sub rule(1), from the due date of filing of return under sub-section (1) of section 139 of the Act; 

(b) in cases referred to in clause(ii) of sub-rule(1), from the date of the order of Assessing Officer or the appellate authority, as the case may be; 

(c) in cases referred to in sub-clause(b) of clause (iii) of sub-rule(1), from the end of the month in which the advance pricing agreement has been entered into by the assessee under section 92CC of the Act; 

(d) in cases referred to in clause (v) of sub-rule (1), from the date of giving effect by the Assessing Officer under rule 44H to the resolution arrived at under mutual agreement procedure.”;

Explanation- For the purposes of this rule, —

(A)"International transaction" shall have the same meaning as assigned to it in section 92B of the Act;

(B)The rate of exchange for the calculation of the value in rupees of the international transaction denominated in foreign currency shall be the telegraphic transfer buying rate of such currency on the last day of the previous year in which such international transaction was undertaken and the "telegraphic transfer buying rate" shall have the same meaning as assigned in the Explanation to rule 26.

NOTE-
1. Rule 10CB inserted by the Income-tax (Fifteenth Amendment) Rules, 2017, w.e.f. 15-6-2017.

2.Substituted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019

Word "excess money" shall be substituted by following 

words "excess money or part thereof"

2a.Substituted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019.

Word "excess money" shall be substituted by following 

words "excess money or part thereof"

3.Substituted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019

(iii) from the due date of filing of return under sub-section (1) of section 139 of the Act in the case of agreement for advance pricing entered into by the assessee under section 92CD ;

Following word shall be substituted namely,

3(iii) in a case where primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC of the Act in respect of a previous year, - 

(a) from the date of filing of return under sub-section (1) of section 139 of the Act ifthe advance pricing agreement has been entered into on or before the due date of filing of return for the relevant previous year; 

(b) from the end of the month in which the advance pricing agreement has been entered into if the said agreement has been entered into after the due date of filing of return for the relevant previous year”;

4.Substituted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019

(iv) from the due date of filing of return under sub-section (1) section 139 of the Act in the case of option exercised by the assessee as per the safe harbour rules under section 92CB;or

Following words shall be substituted namely.

4(v) “from the date of giving effect by the Assessing Officer under rule 44H to the resolution arrived at under mutual agreement procedure, where the primary adjustment to transfer price is determined by such resolution under a Double Taxation Avoidance Agreement entered into under section 90or section 90A of the Act”;

5.Inserted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019

6.Inserted by Income-tax (11th Amendment) Rules, 2019 notification 30th September, 2019