2017
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 January 2018
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1 February 2017
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1 May 2017
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1 April 2017
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Detailed explanation-1: -The General Anti Avoidance Rule (GAAR) provisions shall be effective from the Assessment Year 2018-19 onwards, i.e. Financial Year 2017-18 onwards.
Detailed explanation-2: -The General Anti-Avoidance Rule (GAAR) is an anti-tax avoidance law in India. It came into effect on 1st April 2017.
Detailed explanation-3: -GAAR was finally introduced in India by then Finance Minister, Pranab Mukherjee, on 16 March 2012 during the Budget session introduced vide Finance Act, 2012.
Detailed explanation-4: -GAAR applies to any arrangement that is considered an Impermissible Avoidance Arrangement (IAA). Furthermore, under its provisions, certain transactions are deemed to lack commercial substance. GAAR is not merely restricted to cross-border transactions, but also applies to domestic arrangements.
Detailed explanation-5: -GAAR is specifically against transactions where the sole intention is to avoid tax. In this the taxpayers used legal steps which results in tax reduction, which steps would not have been undertaken if there was no tax reduction. This kind of tax avoidance planning is sought to be covered by GAAR.