Form 3CD Clause 30A for AY 2026-27: Section 92CE Secondary Adjustment & 90-Day Repatriation

Direct answer: For AY 2026-27, Clause 30A of Form 3CD requires a tax auditor to report whether a primary transfer-pricing adjustment covered by section 92CE was made during FY 2025-26 and, if so, the nature and amount of the adjustment, whether excess money with the associated enterprise had to be repatriated to India, whether it was repatriated within the prescribed period, and the imputed interest where it was not. For FY 2025-26 / AY 2026-27, Form 3CD continues under the Income-tax Act, 1961.

Update — 28 September 2026: CBDT changed the specified ordinary AY 2026–27 tax-audit report deadline from 30 September to 21 October 2026 and the related audited return deadline from 31 October to 21 November 2026. Section 92E / Form 3CEB cases follow a separate timetable. Official Income Tax Department announcement.

Why Clause 30A matters in AY 2026-27

Clause 30A sits at the intersection of tax audit and transfer pricing. A company may complete its arm’s-length-price analysis and Form 3CEB correctly yet still create a separate section 92CE exposure if a primary adjustment leaves “excess money” with a foreign associated enterprise. The tax-audit file therefore needs to reconcile the transfer-pricing adjustment, the cash or receivable position with the associated enterprise, the repatriation timeline and any consequential interest income.

This is especially relevant for groups using advance pricing agreements, safe-harbour positions, mutual agreement procedure outcomes or accepted transfer-pricing adjustments. A Clause 30A answer should not be prepared from the general ledger alone; it should be traced back to the transfer-pricing adjustment and the legal trigger under section 92CE.

What does Section 92CE require?

Section 92CE provides for a secondary adjustment where a qualifying primary adjustment to transfer price arises. The listed routes include a suo motu adjustment in the return, an Assessing Officer adjustment accepted by the taxpayer, an advance pricing agreement, safe-harbour rules, or a MAP resolution. The purpose is to align the actual allocation of funds between associated enterprises with the arm’s-length profit allocation reflected by the primary adjustment.

The provision does not apply where the amount of primary adjustment in a previous year does not exceed ₹1 crore, or where the primary adjustment relates to an assessment year commencing on or before 1 April 2016. For an AY 2026-27 case, the historical-year exclusion will ordinarily not be relevant, but the ₹1 crore threshold still needs to be tested.

What Clause 30A asks the auditor to report

The prescribed Form 3CD asks, in substance: whether a primary adjustment referred to in section 92CE(1) has been made; the clause of section 92CE(1) under which it arose; the amount of the primary adjustment; whether excess money with the associated enterprise is required to be repatriated; whether it was repatriated within the prescribed time; and, where it was not, the amount of imputed interest income on the unrepatriated excess money.

That sequence matters. The auditor should first establish the existence and legal character of the primary adjustment, then determine whether section 92CE applies, and only after that test repatriation and interest consequences.

The 90-day repatriation rule under Rule 10CB

Rule 10CB prescribes a 90-day time limit for repatriation of excess money. The date from which the 90 days runs depends on how the primary adjustment arose. For example, a suo motu adjustment is linked to the statutory return-filing trigger, while an accepted adjustment made through an assessment or appellate process follows the trigger specified in Rule 10CB for that route. APA, safe-harbour and MAP cases have their own prescribed trigger mechanics.

A practical audit point is to avoid using one universal “90 days from year end” assumption. The correct starting date must be documented for each primary adjustment and matched to bank evidence showing actual repatriation.

What happens if excess money is not repatriated?

Where excess money is not repatriated within the prescribed time, section 92CE treats the amount as an advance to the associated enterprise and requires imputed interest to be computed in the prescribed manner. The Income Tax Department’s current transfer-pricing guidance also explains an alternative under section 92CE(2A): the taxpayer may opt to pay additional income-tax at 18% on the unrepatriated excess money, with a 12% surcharge on that tax. Where that option is exercised, the statutory consequences differ from continuing with the secondary-adjustment interest mechanism.

The choice between repatriation, continuing imputed interest and the additional-tax option should be evaluated with the transfer-pricing team and the return-preparation team before Form 3CD is finalized. The tax auditor’s reporting should reflect the position actually adopted and supported by records.

Worked example

Assume an Indian company makes a qualifying primary transfer-pricing adjustment of ₹1.80 crore for FY 2025-26 in respect of services provided to its foreign associated enterprise. Because the adjustment exceeds ₹1 crore, the section 92CE threshold requires examination. If the corresponding excess money remains with the foreign associated enterprise, the company should identify the Rule 10CB trigger date, compute the 90-day repatriation window and retain banking evidence of any remittance received.

If only ₹1.20 crore is repatriated within the prescribed period and ₹60 lakh remains outstanding, the Clause 30A working paper should separately document the unrepatriated amount and the consequential section 92CE treatment. The auditor should not simply report the original ₹1.80 crore adjustment as though the entire amount remained outstanding.

Clause 30A reconciliation checklist for tax teams

1. Obtain the final transfer-pricing computation and identify every primary adjustment for FY 2025-26.

2. Map each adjustment to the relevant limb of section 92CE(1): suo motu, accepted assessment adjustment, APA, safe harbour or MAP.

3. Test the ₹1 crore threshold and confirm the assessment year to which the adjustment relates.

4. Reconcile the primary adjustment with Form 3CEB, transfer-pricing documentation, the income-tax return computation and assessment/APA/MAP records where applicable.

5. Determine the amount of “excess money” actually remaining with the associated enterprise rather than assuming it equals the gross adjustment.

6. Calculate the correct Rule 10CB trigger date and the corresponding 90-day deadline.

7. Match repatriation to bank statements, FIRC/remittance records, intercompany ledgers and associated-enterprise confirmations.

8. Where repatriation is delayed, reconcile the imputed interest or additional-tax option with the return computation and tax payments.

9. Retain a Clause 30A memo explaining judgment calls, especially where adjustments span multiple years or more than one associated enterprise.

Common Clause 30A mistakes

A common error is treating every Form 3CEB difference as a section 92CE event. Another is checking only whether money came back to India without first determining the legally correct Rule 10CB start date. Groups also miss partial repatriations, net off unrelated intercompany balances without a documented basis, or fail to align the tax-audit disclosure with the transfer-pricing return and assessment records.

For multinational groups, Clause 30A should be owned jointly by tax-audit, transfer-pricing and treasury teams. A technically correct transfer-pricing adjustment can still produce a poor audit position if the associated cash movement is not monitored.

AY 2026-27 transition: which law and form apply?

The Income Tax Department has clarified that FY 2025-26 / AY 2026-27 continues to be governed by the Income-tax Act, 1961 for tax-audit reporting. Accordingly, the existing Form 3CA or Form 3CB together with Form 3CD continues to apply. The Department states that the ordinary tax-audit report deadline is 21 October 2026, while transfer-pricing cases may have the later tax-audit timeline linked to the 30 November return due date.

Primary sources

Income Tax Department — Section 92CE (secondary adjustment): https://www.incometaxindia.gov.in/w/section-92ce-9

Income Tax Department — Transfer Pricing guidance, including section 92CE and Rule 10CB: https://www.incometaxindia.gov.in/en/transfer-pricing

CBDT Notification G.S.R. 590(E), 15 June 2017 — Rule 10CB: https://www.incometaxindia.gov.in/Communications/Notification/Notification52_2017.pdf

Income Tax Department — AY 2026-27 tax-audit forms and transition FAQ: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/income-tax-forms

Related PGT & Associates guides

Transfer Pricing in India 2026: https://www.pgtandassociates.com/post/transfer-pricing-in-india-rules-documentation-compliance-guide-for-businesses-2026

Form 3CEB for AY 2026-27: https://www.pgtandassociates.com/post/form-3ceb-ay-2026-27-applicability-due-date-penalty

Tax Audit Due Date for AY 2026-27: https://www.pgtandassociates.com/post/tax-audit-due-date-ay-2026-27-30-september-31-october

Need help reconciling Clause 30A?

For businesses with cross-border associated-enterprise transactions, Clause 30A should be reviewed before the tax-audit file is locked. PGT & Associates can assist with transfer-pricing documentation, Form 3CEB and Form 3CD reconciliation, secondary-adjustment analysis and supporting documentation. Professional enquiries: https://www.pgtandassociates.com/contact-us

Disclaimer

This article is for general professional information and does not constitute legal or tax advice. Section 92CE and Rule 10CB consequences depend on the facts, the nature and timing of the primary adjustment, the relevant associated enterprises and the position adopted in the return or proceedings. Obtain case-specific advice before taking or reporting a position.