CBDT Signs Record 219 Advance Pricing Agreements in FY 2025–26, Crosses 1,000 Mark

  • April 1, 2026, 11:52 a.m.

The Income Tax Department on Tuesday announced that the Central Board of Direct Taxes (CBDT) has signed a record 219 Advance Pricing Agreements (APAs) in the financial year 2025–26, marking the highest number ever achieved in a single fiscal year.

This surpasses the previous record of 174 APAs signed in FY 2024–25. With this milestone, the total number of APAs signed by CBDT has now crossed 1,000, reaching 1,034 agreements to date.

Record Achievement Announced on X

In an official post on X, the Income Tax Department highlighted that this achievement reflects the growing success and trust in India’s APA programme. It also marks the first time the cumulative APA count has crossed the 1,000 mark.

Boost to Ease of Doing Business

The government stated that the APA programme has significantly contributed to improving ease of doing business in India, especially for multinational enterprises (MNEs) engaged in cross-border transactions.

The programme, along with Safe Harbour Rules, helps:

  • Provide tax certainty
  • Reduce litigation and disputes
  • Promote a transparent and predictable tax regime

This has strengthened investor confidence and made India a more attractive destination for global businesses.

What is an Advance Pricing Agreement (APA)?

An Advance Pricing Agreement (APA) is a formal agreement between a taxpayer—typically a multinational company—and tax authorities like the CBDT.

It pre-defines the transfer pricing methodology for transactions between related entities over a fixed future period, helping to avoid:

  • Tax disputes
  • Double taxation

Example of APA in Practice

For instance, if an Indian company purchases goods from its overseas subsidiary, an APA determines in advance how the pricing of those goods will be calculated. This ensures that both the company and tax authorities agree on the pricing method, reducing the scope for future disagreements.

Strengthening India’s Tax Framework

The steady rise in APA signings indicates a more stable and investor-friendly tax environment in India. Experts believe that continued expansion of the programme will further:

  • Enhance compliance
  • Minimize tax-related uncertainties
  • Support long-term economic growth

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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