GAAR

GAAR

GAAR(General Anti Avoidance Rule):- is a set of general rules to minimise the avoidance of Tax.

          Mainly there are four methods to reduce tax liabilty: Tax Evation, Tax Avoidance, Tax Mitigation, Tax planning.

   So to reduce 2nd category i.e. Tax avoidance, general anti- avoidance rules(GAAR) are applied. This is done to raise the Tax-collection by governments.

Introduction of GAAR in India  

                       It is introduced in 12 august 2009 with Direct Tax Code Bill(DTC). However owing to negative publicity and pressure it is postponed to 2013.

       The p.m. Manmohan singh set an expert committee(shome committee) to review the guidance of GAAR. The latest reports indicates that this will be postponed for 3 years means to 2016-2017.