CBDT signs record 219 Advance Pricing Agreements in FY 2025-26
What happened
- CBDT signed a record 219 APAs in FY 2025-26, including a record 84 bilateral APAs [PIB].
- Total APAs since inception crossed 1,000, reaching 1,034 (750 unilateral, 284 bilateral) [PIB].
Background
- APAs, introduced in the Income-tax Act in 2012, fix the transfer-pricing method for international transactions in advance for up to five years, with rollback.
Why it matters
- Tax certainty reduces transfer-pricing litigation and supports foreign investment.
How to use this in Mains
- As per PIB (2026-03-31): CBDT signed a record 219 APAs in FY 2025-26, including a record 84 bilateral APAs.
- Tax certainty reduces transfer-pricing litigation and supports foreign investment.
Quotable data pointTotal APAs since inception crossed 1,000, reaching 1,034 (750 unilateral, 284 bilateral).
PIB: Finance: CBDT record 219 APAs, 31 Mar 2026
Exam angle
UPSC
Prelims: APA, transfer pricing.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
APAs signed in FY 2025-26
Answer (b) & explanation
PIB.
Practice · UPSC
A bilateral APA involves
Answer (b) & explanation
PIB.
Practice · UPSC
APA scheme introduced in
Answer (b) & explanation
PIB.
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Official source: PIB: Finance: CBDT record 219 APAs, 31 Mar 2026
facts from cited sources only; faculty review pending