Rule 101 sets how the option is exercised — Form No. 49 before filing the return — that income is computed under the normal provisions if no option is exercised, and that the Assessing Officer may declare the option invalid if incorrect facts were used or facts were concealed.
101
Rules 2026 · Rule 101
Procedure governing safe harbour rules for income attribution in case of income from business and profession
Rules 77-130
Exercising the option (sub-rule 1). The assessee furnishes Form No. 49, complete in all respects, to the Assessing Officer before furnishing the return of income under section 263 for the relevant tax year.
If no option is exercised (sub-rule 2). Income from the eligible business is determined under the Act without regard to rule 100(2).
Invalidity (sub-rules 3 to 5). The Assessing Officer may declare the option invalid by written order where the assessee availed the safe harbour by furnishing incorrect facts or concealed facts related to the business, after a reasonable opportunity of being heard. A copy of the order is served on the assessee, and the other provisions of the Act apply accordingly.
Form (sub-rule 6). Form No. 49 is furnished electronically under digital signature or electronic verification code and verified by the person authorised to verify the return of income under section 265.