Union Budget 2025: Transfer Pricing Reforms - More Loopholes Than Solutions?

Recently, the Finance Minister of India announced the much-anticipated Union Budget 2025. One of the most critical amendments proposed in the Union Budget 2025 is the introduction of a new Transfer Pricing ('TP') assessment scheme.

Presently, the TP assessment can be made for each year separately based on reference made by the Assessing Officer('AO'). There is no exception provided in the law for the same.

Now, in order to ease the compliance burden for the taxpayers as well as the administrative burden on the Transfer Pricing Officers ('TPO'), an option is proposed to be provided in the law to carry out TP assessment in a "block". As per the Hon'ble Finance Minister, the amendment is in line with the global best practices.