<h1>India Analyzes International Transactions to Curb Profit Shifting Under Chapter X of Income Tax Act.</h1> Data on dollars transferred abroad by foreign companies in India is not centrally maintained. To prevent profit shifting and tax base erosion, international transactions are analyzed annually under transfer pricing provisions in Chapter X of the Income Tax Act, 1961. The transfer pricing adjustments for the financial years 2011-12 and 2012-13 amounted to Rs. 23,237 crores, Rs. 44,531 crores, and Rs. 70,016 crores, respectively. Chapter X was added by the Finance Act, 2001, requiring income from international transactions to follow the arm's length principle. Foreign companies' income in India is taxed under the Income Tax Act and Double Taxation Avoidance Agreements.