March 16: GAAR introduced in the Union Budget for fiscal year 2013
Pranab Mukherjee, the-then finance minister, tabled the Union Budget in Parliament, which India Inc. said was a “missed opportunity”, and would have a cascading impact on inflation and consumer demand, dampening growth. He introduced GAAR – the General Anti Avoidance Rules -- a set of stringent laws targeting tax evaders, partly by stopping Indian companies and investors from routing investments through Mauritius or other tax havens for the sole purpose of avoiding taxes. Mr Mukherjee also raised the income tax exemption limit to Rs 2 lakh for all individual tax payers. Also, the upper limit for the 20 per cent tax slab was raised, from incomes up to Rs 8 lakh to income up to Rs 10 lakh.