Current Affairs-Indian Government's Union Budget 2013-14: Modified Provisions of General Anti-Avoidance Rules (GAAR) to Come into Effect from 1ST April, 2016

Modified Provisions of General Anti-Avoidance Rules (GAAR) to Come into Effect from 1ST April, 2016

The Finance Bill 2013 proposes to bring the modified provisions of General Anti-Avoidance Rules (GAAR) into effect from 1.4.2016. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that Finance Act 2012 introduced GAAR. A number of representations were received against the new provisions. An expert committee was constituted to consult stakeholders and finalise the GAAR guidelines.

Shri Chidambaram said after careful consideration of the report, the Government announced certain decisions on 14.1.2013 which were widely welcomed. These decisions are now being incorporated in the Income-Tax Act. The modified provisions preserve the basic thrust and purpose of GAAR.