Intra-group Transactions

Intra-group Transactions – Intra-group transactions refer to financial dealings, sales, or transfers of goods, services, or funds that occur between entities within the same corporate group or organization. These transactions can include intercompany loans, transfers of inventory, or provision of services between subsidiaries, parent companies, or affiliates. Proper accounting of intra-group transactions is essential to ensure accurate financial reporting and to comply with tax regulations, particularly regarding transfer pricing. For tax purposes, any income, profit, or gains arising from intra-group transactions during a Financial Year (FY) are evaluated and taxed in the corresponding Assessment Year (AY).

Example: If a subsidiary sells goods to its parent company in FY 2022–23, the income from that transaction will be assessed and taxed in AY 2023–24.