GAAR

GAAR stands for general-anti-avoidance rules and it has been introduced in India  due to VODAFONE case ruling in favour of this company by the Supreme Court. The new rules  will come into effect from 01 April, 2012. Indian Government is trying to give powers to income tax authorities as implementation of GAAR provides tremendous powers to deny tax benefit to an entity if a transaction has been carried with the sole intention of tax avoidance. Due to powers in the hand of  taxmen, now innocents may be harassed by them.  FII & FDI money coming to India through Mauritius route will now become taxable.