Information and documentation

A person who engages in a specified domestic transaction or an overseas transaction is required under Section 92D of the Income Tax Act to maintain the required records on a regular basis. The records must be kept for eight years starting with the applicable assessment year. An overview of Section 92D of the Income Tax Act is given in this article. Anyone who has engaged in an international transaction or a certain type of domestic transaction is required to retain and maintain the relevant information and documentation as may be stipulated. With the caveat that the person, as a component entity of an international group, should also store and maintain any records and information pertaining to an international group that may be required.

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Without affecting the rules in the aforementioned sub-section, the Board may specify how long information and documents must be retained and preserved in accordance with that sub-section. In the class of any litigation under this Act, the assessing officer or the commissioner (Appeals) may request that any person who has engaged in an international transaction or a specific domestic transaction provide any information or document in regard thereof, as may be prescribed under the aforementioned subsection, within thirty days of the date of receiving of a notice issued in this regard. With the caveat that, upon such person's application, the Assessing Officer or the Commissioner (Appeals) may extend the thirty-day term by an additional period of not more than thirty days. The person referred to in the proviso to the previous sub-section shall provide the information and document referred to in the said proviso to the authority recommended under a sub-section of section 286 in such a manner, on or before the date, as may be prescribed, without prior to the provisions of the aforementioned sub-section. The concept of 12a can be cleared here.

A transaction involving two or more connected businesses that are either one or both non-residents is referred to as an international transaction. The transaction must proceed with the creation of an understanding or agreement between the involved parties. A transaction between two related firms shall be assumed to have been engaged into by an entity with a person other than an associated enterprise, according to the Income Tax Department. As the name implies, specified domestic transactions does not include foreign transactions. When the total amount of all such transactions the assessee pursued during the previous year exceeds five crore rupees, the transactions are categorised as "specified domestic transactions."

Get more details at 12a registration.