Any tax benefit or transfer before April 1, 2017 would be outside the ambit of GAAR

Notification No. 49/2016 dated 22.6.2016

The Government had notified GAAR provisions which are applicable w.e.f. April 1, 2018. However, rule 10U prescribes that GAAR provisions shall not be applicable on any income from transfer of investment made before Aug 30, 2010. Thus, it is clear that GAAR provisions will be applicable retrospectively for investment made on or after Aug 30, 2010. To clear the air on retrospective applicability of GAAR provisions, the CBDT has revised the rule 10U. It has been provided that GAAR provisions shall not be applicable on any income from transfer of investment made before April 1, 2017.

Further, it has been provided that GAAR provisions shall not apply in respect of any tax benefit obtained from arrangement on or after April 1, 2017. Earlier this date was April 1, 2015.

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