New Delhi: India Inc today expressed hope that the government would “relook” into the provisions of the General Anti-Avoidance Rules (GAAR), the implementation of which has been postponed by the government by one year.
“I hope that it is not merely a postponement but they will also take a relook at it and more realistic GAAR will be introduced,” Ficci President RV Kanoria said.
Giving relief to investors, Finance Minister Pranab Mukherjee today deferred the implementation of much-debated GAAR to check tax evasion by one year.
Reuters
“To provide more time to both taxpayers and the tax administration to address all related issues, I propose to defer the applicability of the GAAR provisions by one year. The GAAR provisions will now apply to income of Financial Year 2013-14 and subsequent years,” Mukherjee said in the Lok Sabha.
Besides, he said that “to provide greater clarity and certainty in the matters relating to GAAR, a Committee has been constituted under the chairmanship of the director general of income tax (International Taxation) to give
recommendations for formulating the rules and guidelines for implementation of the GAAR provisions and to suggest safeguards so that these provisions are not applied indiscriminately.”
PTI
