Govt likely to defer GAAR rollout from April 1, 2015: Srcs

The Central government is likely to defer the rollout of the general anti-avoidance rule (GAAR) that was supposed to come into effect from April 1, 2015, say sources.

The government has said that India has just started seeing signs of an economic revival so right now would not be the best time for GAAR.

Also read: Govt to consider if tax payers should be out of PDSWhile adding that it continues to remain committed to the issue, the government doesn’t want to hurt the positive investor sentiment given the robust foreign institutional inflows (FIIs) seen over the past few months. The implementation of this tax rule was announced by former Finance Minister Pranab Mukherjee in 2012-13. The rule empowers the revenue department to annul any deal that has been made with the deliberate attempt to avoid tax. This rule applies to those claiming tax benefits over Rs 3 crore.Also read: Retro tax panel for new cases only; pre-Budget meet in Nov