Rules 2026

Rule 94 of the Income-tax Rules, 2026

Rule 94 — Definitions for safe harbour rules for specified domestic transaction.

Where this rule sits

What this rule does

The rule supplies two definitions used by the safe harbour rules for specified domestic transactions. For the purposes of this rule and rules 95 to 98, "Appropriate Commission" has the same meaning as assigned to it in section 2(4) of the Electricity Act, 2003, and "Government company" has the same meaning as assigned to it in section 2(45) of the Companies Act, 2013.

Why it is there

The safe harbour rules for specified domestic transactions turn on regulated electricity pricing and on the status of the parties, and both expressions already have settled meanings in their own legislation. Rather than write fresh definitions that might drift from the regulatory usage, the rule imports them, so an entity's status under the Companies Act, 2013 and the identity of the regulator under the Electricity Act, 2003 answer the question here as well.

Who it applies to

An assessee relying on the safe harbour rules for specified domestic transactions in rules 95 to 98
An income-tax authority applying rules 95 to 98

What this means in practice

The definitions are borrowed, not written, so nothing in the Income-tax Rules changes what an Appropriate Commission or a Government company is: the tests are those in section 2(4) of the Electricity Act, 2003 and section 2(45) of the Companies Act, 2013, and a change in the meaning under either of those Acts carries through here. Their reach is also limited by their own terms — the definitions apply for the purposes of this rule and rules 95 to 98, and not to the rest of the Rules. A body that regulates electricity but is not the Appropriate Commission for the transaction under the Electricity Act definition does not become one for the safe harbour rules.

Where you meet this rule

A taxpayer never files anything under this rule. You meet it while reading rules 95 to 98, where the two expressions are used and their meanings have to be traced to the Electricity Act, 2003 and the Companies Act, 2013.

The words themselves

"Appropriate Commission" shall have the same meaning as assigned to it in section 2(4) of the Electricity Act, 2003 (36 of 2003)

Rule 94(a), Income-tax Rules, 2026.

"Government company" shall have the same meaning as assigned to it in section 2(45) of the Companies Act, 2013 (18 of 2013)

Rule 94(b), Income-tax Rules, 2026.

What people get wrong

Applying these meanings across the Rules generally. The rule confines them to this rule and rules 95 to 98.
Assuming any State or Central electricity regulator is the Appropriate Commission. The test is the definition in section 2(4) of the Electricity Act, 2003.
Treating substantial Government shareholding as making a company a Government company. The test is section 2(45) of the Companies Act, 2013.

Read with

What this page does not tell you. It does not reproduce the rule. Everything above was written from the rule’s own text as the Income Tax Department publishes it — the text is here. A rule is subordinate legislation: it prescribes the method, the form or the period, and it cannot enlarge the charge the section imposes. Where a figure matters, read the sub-rule it comes from.