Anti-avoidance Rules

GAAR is a set of rules under which the tax department get the right to scrutinise transactions if they believe that they are structured for the purpose of avoiding taxes.

CBDT said that adoption of anti-abuse rules in tax treaties may not be sufficient to address all tax avoidance strategies and they are required to be tackled through domestic anti-avoidance rules.

In a clarification on implementation of GAAR, CBDT said the provisions will not apply if the tax benefits obtained are permissible under the limitation of benefits clause provided in tax treaties.

General Anti-Avoidance Rule (GAAR) was part of the 2012-13 Budget speech of the then Finance Minister Pranab Mukherjee to check tax evasion and avoidance.

To clear the air on retrospective applicability of the General Anti-Avoidance Rule (GAAR), the Income Tax Department has said the same will not apply to income from transfer of investments before April 1, 2017.

Overseas investors have poured in $2.5 billion into the Indian capital markets so far this month, taking the total inflow to around $12 billion since the beginning of the year.

Foreign investors poured in over Rs 24,500 crore in Indian capital markets last month and analysts expect the inflows to rise after the Union Budget sought to address concerns on controversial issues like GAAR (General Anti-Avoidance Rules) and retrospective taxation.

The government , keen to rekindle economic growth, wooed foreign investors on Saturday with a Budget that delayed controversial rules to target tax avoidance and maintained lower taxes on income from debt investments.

Another big reason may be the absence of foreign investors on a Saturday, analysts added. Mr Jaitley proposed the postponement of the dreaded General Anti-Avoidance Rules or GAAR by two years.

The BSE Sensex and Nifty rose nearly 1 per cent today, recovering from earlier falls after Finance Minister Arun Jaitley proposed to cut the corporate tax rate over the next four years and delayed the implementation of planned General Anti-Avoidance Rules(GAAR) by two years.

In his first full-year Budget, Finance Minister Arun Jaitley announced the postponement of the dreaded General Anti-Avoidance Rules or GAAR by two years. GAAR was supposed to kick in from April 1, 2015.

PHD Chamber of Commerce and Industry on Tuesday asked the government to implement the General Anti Avoidance Rules (GAAR) from April 1, 2016 instead of April this year.

The government on Wednesday ruled out any tax amnesty scheme to unearth black money saying it goes against honest taxpayers even as it sought to send out a positive signal to investors by promising a re-look at the controversial GAAR shortly.

The government will shortly take a call on the controversial tax proposal General Anti-Avoidance Agreement, which was deferred till April 2015 by the UPA regime, Finance Ministry Arun Jaitley said on Friday.

Introduced in 2012, the General Anti-Avoidance Rules (GAAR), were aimed at companies routing money through tax havens such as Mauritius, but implementation was delayed after an uproar from investors who feared harassment from tax authorities.

GAAR is a set of rules under which the tax department get the right to scrutinise transactions if they believe that they are structured for the purpose of avoiding taxes.

CBDT said that adoption of anti-abuse rules in tax treaties may not be sufficient to address all tax avoidance strategies and they are required to be tackled through domestic anti-avoidance rules.

In a clarification on implementation of GAAR, CBDT said the provisions will not apply if the tax benefits obtained are permissible under the limitation of benefits clause provided in tax treaties.

General Anti-Avoidance Rule (GAAR) was part of the 2012-13 Budget speech of the then Finance Minister Pranab Mukherjee to check tax evasion and avoidance.

To clear the air on retrospective applicability of the General Anti-Avoidance Rule (GAAR), the Income Tax Department has said the same will not apply to income from transfer of investments before April 1, 2017.

Overseas investors have poured in $2.5 billion into the Indian capital markets so far this month, taking the total inflow to around $12 billion since the beginning of the year.

Foreign investors poured in over Rs 24,500 crore in Indian capital markets last month and analysts expect the inflows to rise after the Union Budget sought to address concerns on controversial issues like GAAR (General Anti-Avoidance Rules) and retrospective taxation.

The government , keen to rekindle economic growth, wooed foreign investors on Saturday with a Budget that delayed controversial rules to target tax avoidance and maintained lower taxes on income from debt investments.

Another big reason may be the absence of foreign investors on a Saturday, analysts added. Mr Jaitley proposed the postponement of the dreaded General Anti-Avoidance Rules or GAAR by two years.

The BSE Sensex and Nifty rose nearly 1 per cent today, recovering from earlier falls after Finance Minister Arun Jaitley proposed to cut the corporate tax rate over the next four years and delayed the implementation of planned General Anti-Avoidance Rules(GAAR) by two years.

In his first full-year Budget, Finance Minister Arun Jaitley announced the postponement of the dreaded General Anti-Avoidance Rules or GAAR by two years. GAAR was supposed to kick in from April 1, 2015.

PHD Chamber of Commerce and Industry on Tuesday asked the government to implement the General Anti Avoidance Rules (GAAR) from April 1, 2016 instead of April this year.

The government on Wednesday ruled out any tax amnesty scheme to unearth black money saying it goes against honest taxpayers even as it sought to send out a positive signal to investors by promising a re-look at the controversial GAAR shortly.

The government will shortly take a call on the controversial tax proposal General Anti-Avoidance Agreement, which was deferred till April 2015 by the UPA regime, Finance Ministry Arun Jaitley said on Friday.

Introduced in 2012, the General Anti-Avoidance Rules (GAAR), were aimed at companies routing money through tax havens such as Mauritius, but implementation was delayed after an uproar from investors who feared harassment from tax authorities.