I have already mentioned in my earlier posts about meaning of GAAR. GAAR is General Anti Avoidance Rules. Assocham said that the government should put off implementation of GAAR until 2015 as these have created a bad perception about Indian tax laws among global investors. But Finance Ministry has put out a comprehensive draft of new guidelines for GAAR. Here are facts about this draft:
1. Finance ministry said that GAAR will come into effect from April1,2013. Through releasing draft, finance ministry committee stated that FIIs not opting for treaty benefits and ready to pay taxes will not come under GAAR, […] Read more


In my earlier post I have discussed about GAAR, and now Indian government is trying to dilute it. As many countries are opposing it and due to its implication Foreign Direct Investment (FDI) in India can be hampered.

According to new discussion India could introduce new capital gain tax liabiliteis for foreign investors who invest in India through Mauritius. India and Mauritius have a tax treaty to avoid double taxation but new foreign companies might not get the treaty’s protection under the new regulation if Indian officials feel that those investments are routed through Mauritius only to get tax benefits.

The […] Read more


Our Finance Minister today said that GAAR won’t be rolled back. But many of us don’t even know what is GAAR. It is General Anti Avoidance Rules. These are regarding FII (Foreign Institutional Investors), which I have discussed in my previous post also.
I had said this earlier also if these rules are followed it will affect foreign investment in our country. Although these rules are proposed and these will be presented in parliament in May. Pranab Mukherjee, our finance minister says that these rules won’t be taken back.
Rest clarifications will be issued when finance bill will be presented in parliament.
But […] Read more