Rule 83: Secondary adjustments: repatriation and interest
Where the secondary-adjustment framework applies, Rule 83 identifies the date from which the ninety-day repatriation period is measured and the interest treatment if excess money is not returned in time. Different adjustment routes have different starting dates.
Official notified Income-tax Rules, 2026Need advice on Rule 83?
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On this page
- Bare law
- Choose the correct starting date
- Repatriate within ninety days of that date
- Interest for Indian-rupee transactions
- Interest for foreign-currency transactions
- Do not start interest only after day ninety
- Apply the specified exchange-rate date
- Key takeaways
- Practical checklist
- FAQs
- Glossary
- Official sources
Bare law
Rule 83 - Time period for repatriation of excess money under section 170(2) and computation of interest income under section 170(4) pursuant to secondary adjustments
(1) For the purposes of section 170(2)(b), the time limit for repatriation of excess money or part thereof in the circumstances mentioned in column B of the following Table shall be on or before ninety days from the date mentioned in column C thereof:
Sl. No. (A) Circumstances (B) Date (C) 1. Primary adjustments to transfer price have been made suo motu by the assessee in his return of income. Due date of furnishing of return under section 263(1). 2. Primary adjustments to transfer price as determined in the order of Assessing Officer or the appellate authority has been accepted by the assessee. Date of the order of Assessing Officer or the appellate authority, as the case may be. 3. Primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 168 in respect of a tax year on or before the due date of furnishing of return for the relevant tax year. Due date of furnishing of return under section 263(1). 4. Primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 168 in respect of a tax year after the due date of furnishing of return for the relevant tax year. End of the month in which the advance pricing agreement has been entered into. 5. Option is exercised by the assessee as per the safe harbour rules under section 167. Due date of furnishing of return under section 263(1). 6. Primary adjustment to transfer price is determined by the resolution arrived at under mutual agreement procedure under a Double Taxation Avoidance Agreement entered into under section 159 (1) or (2). Date of order giving effect under rule 121(10) to such resolution. (2) The imputed per annum interest income on excess money or part thereof, which is not repatriated within the time limit as per sub-rule (1) shall be computed — (a) at the one-year marginal cost of fund lending rate of the State Bank of India as on the 1st April of the relevant tax year plus 325 basis points in the cases where the international transaction is denominated in Indian rupee; or (b) at the reference rate of the relevant foreign currency, as defined in rule 89(3), as on the 30th September of the relevant tax year plus 300 basis points in the cases where the international transaction is denominated in foreign currency.
(3) The interest referred to in sub-rule (2) shall be chargeable on excess money or part thereof which is not repatriated in cases referred to in column B of the Table in sub-rule (1) from the date mentioned in column C thereof.
(4) For this rule, the exchange rate for conversion of the value of international transactions denominated in foreign currency into Indian rupees, shall be the telegraphic transfer buying rate of such currency on the last day of the tax year in which the transaction was undertaken and the ―telegraphic transfer buying rate‖ shall have the meaning assigned to in rule 207.
Rule breakdown
Choose the correct starting date
For a self-made return adjustment and a safe-harbour option, the table uses the return due date under section 263(1). For an accepted AO or appellate order it uses that order’s date.
An APA concluded by the relevant return due date uses that due date; an APA concluded later uses the end of the month in which the agreement is entered into. A MAP resolution uses the date of the giving-effect order under Rule 121(10).
Repatriate within ninety days of that date
The rule requires repatriation of excess money or part of it on or before ninety days from the table’s applicable date. Record the relevant adjustment event and evidence of money returned.
Do not use one common ninety-day clock for every adjustment route or substitute the date on which an internal team first noticed the adjustment.
Interest for Indian-rupee transactions
For an INR-denominated international transaction, the annual imputed rate is SBI’s one-year marginal cost of fund lending rate as at 1 April of the relevant tax year plus 325 basis points.
Illustrative arithmetic only: if that benchmark is 8%, adding 325 basis points gives 11.25% per annum. 8% is not a statement of the actual benchmark for any year.
Interest for foreign-currency transactions
For a foreign-currency transaction, use the relevant currency reference rate defined in Rule 89(3) as at 30 September of the relevant tax year, plus 300 basis points.
Identify the correct currency and the rule-defined reference rate; do not substitute the INR benchmark or a convenient borrowing rate.
Do not start interest only after day ninety
Where money is not repatriated within the permitted period, sub-rule (3) charges the interest from the corresponding date in the table. That is distinct from waiting until the ninety-day period expires to begin the interest calculation.
Track amounts and dates of any partial repatriation so the excess-money computation can be reviewed correctly.
Apply the specified exchange-rate date
For conversion into INR, use the telegraphic-transfer buying rate on the last day of the tax year in which the international transaction was undertaken. Rule 207 supplies the rate definition.
Keep the currency source and dated rate evidence with the adjustment and repatriation records. Apply Rule 83 together with the relevant conditions of section 170.
Key takeaways
Six event-based clocks
The applicable table date depends on the adjustment route.
Ninety-day repatriation
Measure from the specified event, not a chosen internal date.
Interest can run from the table date
Do not assume it starts only on day 91.
Currency-specific benchmark
INR and foreign-currency rates use different reference dates.
Practical checklist
- Identify the adjustment route and table date.
- Retain bank evidence of repatriation and partial repayments.
- Use the currency-specific benchmark and relevant reference date.
Avoid
- Do not begin the interest clock at day 91 without reading sub-rule (3).
- Do not use a single rate or starting date for all adjustment routes.
FAQs
Does interest begin only after the ninety-day period?
For excess money not returned within that period, sub-rule (3) specifies interest from the corresponding table date.
What benchmark applies to an INR transaction?
The SBI one-year MCLR as at 1 April of the relevant tax year plus 325 basis points.
Does every APA use the date it is signed?
No. An APA concluded by the return due date uses that due date; a later APA uses the end of its entry month.
Which exchange-rate date is prescribed?
The last day of the tax year in which the international transaction was undertaken, using the Rule 207 telegraphic-transfer buying-rate definition.
Glossary
- Basis point
- One hundredth of a percentage point; 325 basis points equals 3.25 percentage points.
- MCLR
- Marginal cost of fund lending rate; the rule specifies SBI’s one-year rate for INR cases.