<h1>India's Safe Harbour Rules Simplify Transfer Pricing for IT, R&D, and More; Excludes Low-Tax Jurisdictions.</h1> The Government of India, through the Finance Act of 2009, empowered the Central Board of Direct Taxes (CBDT) to establish Safe Harbour Rules to streamline transfer pricing audits and disputes. Following extensive consultations led by a committee, the government approved Safe Harbour Rules for sectors including IT, ITES, R&D, financial transactions, and auto ancillaries. These rules, applicable for two assessment years from 2013-14, define conditions under which declared transfer prices are accepted. The rules exclude transactions with entities in low-tax jurisdictions and require taxpayers to opt-in. Taxpayers using these rules cannot invoke the Mutual Agreement Procedure under DTAAs.