Union Government has decided to amend the Income Tax Rules to end the improbability over the General Anti Avoidance rules as it is expected to start with effective from 01.04.16
About General Anti Avoidance Rules
- An Anti-Tax avoidance regulation of India
- Focused at transactions made parti
- cularly to avoid taxes
- Introduced by: Pranab Mukherjee, then Finance Minister during 2012
- Initiated during: 2012 Budget Session
- During the 2015 Budget session, Finance Minister Arun Jaitley announced that its implementation will be delayed by 2017
Amendments in New Rules:
- As per new rules, the GAAR will not applicable to Foreign Institutional Investors with respect of income from transfer of investment made before April 1st, 2017
- The Amendments in GAAR was followed on consultation with and gathered opinions from stakeholders over the past month by the finance ministry
- The target people who are doing any business transaction or arrangement entered into solely for purpose of avoiding taxes
- Tax experts had been calling for a potential launching of the rules
- Transactions that failed to satisfy the GAAR, will be treated as tax, including arrangements entered into for the purpose of availing benefits of India’s tax treaty with other countries
- The Rules will accord the possibility to foreign investors about the incidence of GAAR
- Provide relief for any business arrangement entered before the April 1st 2017
- The following amendments made applicable to India-Mauritius Tax treaty
AffairsCloud Recommends Oliveboard Mock Test
AffairsCloud Ebook - Support Us to Grow
Govt Jobs by Category
Bank Jobs Notification