Ficci hopes Govt will relook into provisions of GAAR

**New Delhi:**India Inc today expressed hopethat the government would “relook” into the provisions of theGeneral Anti-Avoidance Rules (GAAR), the implementation ofwhich has been postponed by the government by one year.

“I hope that it is not merely a postponement but theywill also take a relook at it and more realistic GAAR will beintroduced,” Ficci President RV Kanoria said.

Giving relief to investors, Finance Minister PranabMukherjee today deferred the implementation of much-debatedGAAR to check tax evasion by one year.

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“To provide more time to both taxpayers and the taxadministration to address all related issues, I propose todefer the applicability of the GAAR provisions by one year. The GAAR provisions will now apply to income of Financial Year2013-14 and subsequent years,” Mukherjee said in the LokSabha.

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Besides, he said that “to provide greater clarity andcertainty in the matters relating to GAAR, a Committee hasbeen constituted under the chairmanship of the director general of income tax (International Taxation) to give

recommendations for formulating the rules and guidelines forimplementation of the GAAR provisions and to suggestsafeguards so that these provisions are not appliedindiscriminately.”

PTI