Shome panel submits GAAR report: Here are the proposals

The Parthasarathi Shome panel has submitted two reports to the Finance Minister P Chidambaram. The reports include final take on General Anti-Avoidance Rules (GAAR) and the other is a draft on retrospective amendment, reports CNBC-TV18's Siddarth Zarabi.

The Shome panel has recommended a full and final deferral of GAAR by another three years and has proposed not to levy any capital gains tax. A draft report on GAAR has already been made public by the finance ministry inviting stake holder comments. It, of course, remains to be seen what final course of action the finance ministry takes. However, it is known that both the finance ministry and the government want to avoid the matter for the time being. Also read: Recommendations on GAAR kindle investor's hopes: Emkay
Besides, the Shome panel has submitted draft report on the infamous retrospective amendment to section 9, which has clearly caused a lot of consequences and an uproar across the world. It is likely that the panel has recommended exemption from the ambit of the amendment for participatory notes and indirect transfers.
This clearly would mean that all those companies, whose transactions have been in the news for quite some time now and whose faith had more or less been sealed as a consequence of this amendment being passed in the current year’s Budget, could breathe a sigh of relief.