Budget 2026: Tax Experts Urge Overhaul of India's Transfer Pricing Norms

• Tax experts, led by Gokul Chaudhri of Deloitte South Asia, advocate for a comprehensive review of India's transfer pricing (TP) compliance framework ahead of Budget 2026.
• Key proposals include a de minimis exemption for international transactions up to ₹10 crore and complete exemption for SMEs with turnover up to ₹50 crore or assets up to ₹10 crore from TP documentation.
• Experts highlight that current TP regulations, largely unchanged since 2001, are outdated given India's economic growth and increased SME participation in cross-border trade.
• The call for reform is supported by global benchmarks from the UK and Singapore, which offer relaxed TP documentation requirements for SMEs and certain transactions.
• Proposed changes aim to reduce compliance burden by 25-30% and align India's TP regime with global best practices, especially in the era of Global Minimum Tax.

Why It Matters: Tax experts seek significant reforms in India's transfer pricing rules to ease compliance for SMEs and align with global standards.