GAAR-General Anti-Avoidance Rules: Explained With Examples

Introduction General Anti-Avoidance Rule (GAAR) is an anti-tax avoidance regulation of India. It was introduced by then Finance Minister, Pranab Mukherjee, on 16 March 2012 during the Budget session. Tax Avoidance Avoidance means nothing but an attempt to reduce the tax liability through the legal means. The difference between Tax Avoidance and Tax Evasion Evasion & Avoidance are two different entities. In Avoidance, tax reduction is done legally but in evasion, it is done illegally. GAAR in simple terms Tax Avoidance is one of the major concerns across the world….

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