On 26 June 2023, the Indian Central Board of Direct Taxes (CBDT) has issued Notification No. 46/2023, setting arm’s-length pricing variation limits for the 2023-24 assessment year. The limits are 1 percent for wholesale trading and 3 percent for other cases. The notification aims to regulate fair pricing in transactions and deems the transaction price as the arm’s-length price if it falls within these limits. The notification also defines “wholesale trading” and assures that no adverse effects will result from its retrospective effect. This measure promotes transparent pricing practices and structured assessment of taxable income in India.