The provisions of General Anti Avoidance Rule (GAAR) are contained in Chapter X-A of the Income-tax Act, 1961 (the Act), which shall be effective from assessment year 2018-19 onwards, i.e.; financial Year 2017-18 onwards.
The necessary procedures for application of GAAR and conditions under which it shall not apply, have been enumerated in rules 10U to 10UC of the Income-tax Rules, 1962.
Several stakeholders and industry associations have represented that guidelines for implementation of GAAR be issued so that there is adequate clarity in this regard.
The general public and stakeholders are therefore requested to provide their inputs on the provisions of GAAR in respect of which further clarity is required, from its implementation perspective.
For the exercise to be meaningful, it is essential that reference to hypothetical situation is avoided.
If the input relates to interpretation of a specific real world structure or arrangement, the structure should be such as commonly occurs in the sector and involves clarification of general principles of application.
Further, in relation to such structure, the particular provision and apprehensions or doubt along with basis thereof may also be provided with all the relevant facts.
