Jul 01, 2016

Amendment of Rules for Application of General Anti Avoidance Rule

The Central Board of Direct Taxes has amended Rule 10U of the Income-tax Rules, 1962 (‘Rules’) regarding application of General Anti Avoidance Rule (‘GAAR’), whereby any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any person from transfer of investments made by such person before April 1, 2017 will be grandfathered and not be subject to GAAR (such date previously being August 30, 2010). Further, GAAR will apply to any arrangement, irrespective of the date on which it was entered, with respect to the tax benefit obtained from such arrangement on or after April 1, 2017 (such date previously being April 1, 2015).




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