FM Lays Down Roadmap For GAAR

The Finance Act 2012 introduced the General Anti Avoidance Rules (GAAR) in the Income-tax Act, 1961 (IT Act). Thereafter, the Prime Minister set up an Expert Committee (EC) under the Chairmanship of Dr Parthasarathi Shome. On 31 August 2012, the EC submitted its draft report with its recommendations. The EC, after considering comments on its draft report, submitted its Final Report on 30 September 2012. After giving due consideration to the Final Report, the Government has issued a press release on 14 January 2013 (Press Release) announcing deferral of GAAR by 2 years as well as acceptance of some major recommendations of the EC. 

This Khaitan Newsflash provides a brief snapshot of the statements made in the Press Release and also certain key recommendations from the Final Report that may be expected to be addressed in the final GAAR provisions.

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