GAAR should be implemented post review: Shaktikanta Das
The government is yet to decide on whether the controversial general anti-avoidance tax law GAAR should be implemented as scheduled or not. They have enough time to review that, and should look into all the aspects before taking the final call.
The Revenue Secretary Shaktikanta Das mentioned in a post-Budget interaction with industry body CII (Confederation of Indian Industry) that the issue of GAAR was not on the table for this Budget. The deferment of GAAR till March 31, 2015 has given the government a good eight months to look into it thoroughly. He also mentioned that there is enough time for the government to review that and it is the fact that the new government is yet to take view on GAAR.
Forthose claiming tax benefits of over Rs 3 crore, the government had earlier proposed imposing the General Anti-Avoidance Rules (GAAR) from April 1, 2015. There were tax havens created to protect the interests of a particular group, however have been hugely misused by many. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens.
As per the existing proposal, investments made after March 2013 will be covered under GAAR with effect from assessment year 2016-17. This issue was raised again after Minister of State for Finance NirmalaSitharaman, in a written reply to the Lok Sabha last week, mentioned that GAAR will be applicable from April 1, 2015.
Source- Financial Chronicle
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