New Delhi [India], August 19 (ANI): Taxpayers are more concerned about certainty and predictability in tax matters than the payment of taxes, and providing such certainty can encourage greater compliance, Chief Commissioner of Income Tax (International Taxation) Raman Chopra told ANI on Wednesday.
“In International Tax Administration, we need to provide certainty. We are providing it through safe harbour, we are providing it through APA, we are providing it through better transfer pricing adjustments, and once certainty comes, then it will be good for the equity, for the SSE, and that is what they require,” Chopra said in an interaction with ANI on the sidelines of the 23rd International Taxation Conference organised by ASSOCHAM.
“The taxpayer is not bothered about paying tax; he is more bothered about having certainty available. Once certainty is available, then people will pay,” he added.
Chopra’s comments assume significance as India continues to refine its international tax framework and transfer pricing mechanisms amid changes in the global tax environment.
The Income Tax Department has been emphasising tax certainty, simplified compliance and greater engagement with taxpayers as part of the evolving international taxation architecture.
Safe harbour provisions and Advance Pricing Agreements (APAs) are among the mechanisms used to provide greater certainty in transfer pricing matters. The government has also continued to focus on expanding and strengthening these mechanisms.
Chopra said that certainty through these mechanisms is important for taxpayers dealing with international transactions, particularly as cross-border business structures and transfer pricing issues become increasingly complex.
He also pointed to the role of better transfer pricing adjustments in improving certainty for taxpayers. Transfer pricing is a key component of international taxation, particularly where multinational enterprises undertake transactions between associated enterprises across jurisdictions.
India has in recent years increased its focus on Advance Pricing Agreements, while also strengthening safe harbour provisions. The revised transfer pricing framework under the Income-tax Rules, 2026 includes changes aimed at simplifying compliance and improving certainty for eligible taxpayers.
Chopra’s remarks come at a time when India is implementing the new Income-tax Act, 2025, with the Income Tax Department engaging with taxpayers and tax professionals on international tax and transfer pricing provisions.
A CBDT-PwC India outreach webinar in June attracted more than 1,100 participants from 16 overseas jurisdictions and discussed international taxation, transfer pricing, APAs and safe harbour provisions.
The international tax framework is also undergoing wider changes globally, including discussions around the OECD’s two-pillar approach to taxation.
Chopra had earlier emphasised India’s commitment to tax certainty, simplified compliance and a non-intrusive tax administration while discussing these global developments.
For businesses, greater certainty can help reduce prolonged disputes and improve the ability to assess tax liabilities while making cross-border investment and operational decisions.
The emphasis on certainty also reflects the government’s broader objective of creating a predictable tax environment while protecting India’s legitimate tax base. (ANI)
Related reading
