Sensex breathes 205 pts sigh on GAAR clarity; rupee spikes

The BSE Sensex showed smart recovery on Tuesday after CNBC-TV18, citing unnamed finance ministry officials, reported the government would not target the participatory notes under its newly proposed General Anti-Avoidance Rule (GAAR).

Overall the day was quite choppy ahead of F&O expiry on Thursday. The 30-share BSE Sensex rose 204.58 points or 1.20%, to close at 17,257.36 after hitting an intraday high of 17,366.84 and low of 17,061.16.

Finance ministry sources say, only participatory notes which fail certain regulatory tests may be subject to taxation. There will not be a double taxation, the report said.

Aliff Fazelbhoy, partner - tax, M&A and employment, ALMT Legal, said that it was not the government