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GAAR India Amendments Draft Ready for PMO Nod

FIIs are worried with proposed General Anti-Avoidance Rules i.e. GAAR terms and it has led to a flight of capital from India. Subsequently seeing the negative signals being emanated from GAAR proposal ; govt got into action and now  Finance Minister P Chidambaram has stated that amendments to GAAR, the controversial law against tax avoidance through foreign investments is ready for approval from PMO. The amendments have been made to Chapter 10A of the Income Tax Act which deals with taxation of investments. He stated and we quote:

“I have finalised the amendments to the Chapter 10A of the Income Tax Act. Now it will go to the PMO and then we should be ready with the amendments and then the GAAR rules will reflect the amended Chapter 10A.

“That is under preparation and I think the work is almost complete. The drafting work is complete. So, GAAR is under control. I have taken the decisions, subject to Prime Minister’s approval and then Cabinet,” he told PTI in an interview. It is good that GAAR is under control and we see amendments which are investor friendly.

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