GAAR refers to General Anti-Avoidance Rules, which are introduced in tax laws, to catch all schemes for tax avoidance in general. Unlike SAAR, GAAR is intended to apply to all types of transactions and arrangements, all types of taxpayers, all types of taxes on various income. Since they are general in nature and can have wide application due to different interpretation by tax officers and taxpayers, the GAAR rules, needs to be drafted carefully, else they can promote a lot of tax uncertainty for taxpayers.
Overview of Indian General Anti Avoidance Rule (GAAR) Provisions
GENERAL ANTI AVOIDANCE RULE (GAAR) PROVISIONS
- Section 95 of Income Tax Act
- Section 96 of Income Tax Act
- Section 97 of Income Tax Act
- Section 98, 99, 101, 102 of Income Tax Act