ARTICLE · 16 FEBRUARY 2026

Draft Income-tax Rules, 2026 Notified For Safe Harbour For IT Services

Nexdigm Private Limited

Explore more from Nexdigm Private Limited

Pursuant to the clarification provided in the Hon'ble Finance Minister's Budget Speech regarding the revamping of the Safe Harbour Rule, the Government has introduced Rule 91 of the Income-tax Rules, 2026...

IndiaTax

Nexdigm Private Limited

Author LinkedIn connections

Pursuant to the clarification provided in the Hon'ble Finance Minister's Budget Speech regarding the revamping of the Safe Harbour Rule, the Government has introduced Rule 91 of the Income-tax Rules, 2026¹ which provides a five-year transfer pricing compliance framework for eligible IT service providers, aimed at delivering greater certainty, simplicity, and a reduced compliance burden.

Nature of services covered

Software development services
Information technology-enabled services
Knowledge process outsourcing services
Contract research and development services wholly or partly relating to software development.

(collectively referred to as the 'information technology services')

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

ITAT Holds That Indirect Transfer Of Shares Are Subject To India-Ireland Treaty Protection

Aurtus Consulting LLP

India Notifies Protocol Amending The India–Mauritius Tax Treaty: Principal Purpose Test In Force From 10 August 2026

Aurtus Consulting LLP

Section 122(1A) Extends To Non-Taxable Persons, But Requires Proof Of Benefit And Causative Role; Provision Operates Prospectively – Delhi HC Read More

Aurtus Consulting LLP

Indirect Tax Alert – 57th GST Council Meeting

Aurtus Consulting LLP

Form 10-IEA Prevails Over An Inconsistent ITR Selection; Corresponding Old-regime Deductions Must Be Allowed

Aurtus Consulting LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax
- Income Tax

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

GST On Legal Services & Advocate Fees Explained

Many people seek legal aid, but what about the charged GST? This article details the changes made to the Indian indirect taxation system regarding the GST on legal services.

How To Check & Track GST Application Status Using ARN?

Wondering about your GST application status? Learn how to check your GST ARN status and track approval, rejection, or pending updates easily.

How To File A GST Complaint Online: Step-By-Step Guide

Filing GST complaints and grievances online is a straightforward process designed to address issues related to GST registration, filing errors, or any disputes regarding the GST system.

How To Add Or Update Bank Account In GST Portal?

Learn how to add or update your bank account on the GST portal. Follow step-by-step instructions, comply with Rule 10A, and avoid GST registration issues.

How To Generate E-Way Bill Under GST: Process Explained

In today's fast-paced logistics and supply chain environment, ensuring the smooth movement of goods is critical. One key compliance requirement for businesses transporting goods...

C Form: Conditions, Timeline, Importance, and Consequences

A certificate, or C from, is required to conduct business between other states. It is given by the seller of the goods to the purchaser of the commodities to lower the tax rate. This article takes a close look at the C form.

Foreign Assets Of Small Taxpayers Disclosure Scheme, 2026

The Black Money Act of 2015 introduced stringent measures to tax undisclosed foreign income and assets held by resident taxpayers in India. What are the consequences for failing to report foreign income or assets, and how does this legislation impact tax compliance for individuals with international holdings?

Aurtus Consulting LLP

GST Registration For Branches In Multiple States

Learn about GST registration for branches in India. Understand the need for separate GST registration across states and the process involved. Get expert assistance!

Minimum Alternate Tax (MAT) Amendments In Union Budget 2026 – A Critical Analysis

Minimum Alternate Tax (MAT)1 has worked as a minimum tax protection in India's corporate tax system.

Nexdigm Private Limited

Direct Tax Newsletter - Sep - Oct 2026

The CBDT, through its press release dated 28 September 2026, has extended the due date for furnishing the Return of Income for Assessment Year 2026-27 in the case of persons covered under the specified category in the table to Explanation 2 to section 139(1) of the Income-tax Act, 1961, i.e. persons whose accounts are subject to audit under the Act. The original due date for furnishing the return was 31 October 2026. The CBDT has extended this date by 21 days, and the revised due date is 21 November 2026.

King, Stubb & Kasiva