Updated By: LatestGKGS Desk
CBDT Anti-avoidance rule GAAR start from 1st April 2017
The Central Board for Direct Taxes announces that The General Anti-Avoidance Rule (GAAR) will be introduced on April 1, 2017
In its year 2016 year-end review, the Central Board of Direct Taxes (CBDT) listed its major achievements.
CBDT is the apex policy making body of the Information Technology department.
GAAR was a part of the 2012-2013 Budget speech of the then Finance Minister Pranab Mukherjee to keep a check on tax evasion and avoidance.
The implementation was continuously postponed due to apprehensions expressed by foreign investors
GAAR was originally anticipated to come into force from April 1, 2014 but will now be implemented from April 1, 2017.
GAAR contains provisions allowing the government to prospectively tax overseas deals involving local assets and through its use, Government will try to tax P-Notes as indirect investments which would be able to attract tax rate up to 15%.
