Union Minister of Finance P Chidambaram Finalised GAAR Amendment

Union Finance Minister P. Chidambaram on 18 November 2012 disclosed that the Amendments to GAAR, the controversial law against tax avoidance through foreign investments, had been finalised.

Supporting the fact P. Chidambaram asserted that the amendments to the Chapter 10A of the Income Tax Act which deals with taxation of investments were finalized and it will be sent to the Prime Minister Office (PMO).

GAAR (General Anti-Avoidance Rules), which was proposed in 2012-13 budgets with a view to preventing tax evasion, generated sharp reactions from foreign as well as domestic investors who feared that ungoverned powers to taxmen is going to result in harassment of investors.

To look into the concerns a committee was appointed then by the government which was headed by tax expert Parthasarthi Shome

Issue relating to retrospective tax amendment on which the Shome Committee had submitted its report, is also under consideration with the drafting going on and it will go to the PMO and then to the Cabinet.

The government is keen to get the investment engine ongoing and measures were being taken by the government to create a better climate.

To get an insight of GAAR Report Submitted to Shome Committee. Click Here