Concept: General Anti-Avoidance rule (GAAR) Topic: Income tax Category: Governance Related News: ET, June 24 CNA mentions: 2(Apr 9,June 24) General Anti-Avoidance rule (GAAR) General anti-avoidance rule (GAAR) is an anti-tax avoidance regulation of India. Originally proposed in the Direct taxes code 2010,are targeted at arrangement or transactions made specifically to avoid taxes. It was introduced by then Finance Minister, on March 2012 during the Budget session. It was considered controversial because it had provisions to seek taxes from past overseas deals involving local assets retrospectively . During the 2015 Budget presentation, Finance Minister Arun Jaitley announced that its implementation will be delayed by 2 years. The regulation allows tax officials to deny tax benefits, if a deal is found without any commercial purpose other than tax avoidance. It allows tax officials to target participatory notes. Under GAAR, the investor has to prove that the participatory note was not set to avoid taxes. The concept was in the news recently. To know why it was in the click the above link titled ‘Related News’.