General Anti-Avoidance Rule or GAAR is India’s anti-tax avoidance law or regulation. It was originally recommended in the Direct Taxes Code of 2010. The rule specifically targets transactions done especially to avoid taxes. GAAR was introduced in Parliament by the then Minister for Finance in March 2012 in the Budget session. The proposal was deemed controversial because of a provision that empowered authorities to pursue taxes from previous overseas transactions involving local assets in retrospect. The law also empowers authorities to refuse tax benefits if a transaction is found to have no purpose other than tax avoidance.
In his 2015 presentation of budget, current Minister for Finance Arun Jaitley has said that the implementation of GAAR will be late by two years.