What does GAAR mean in GENERAL
General Anti-Avoidance Rules (GAAR) is an Indian tax law that was introduced in 2012. The main purpose of GAAR is to prevent taxpayers from entering into transactions or arrangements that are meant to avoid or reduce their tax liabilities. Through GAAR, the government encourages taxpayers to follow ethical practices while paying their taxes and to ensure that they pay the correct amount of taxes on their income.
GAAR meaning in General in Computing
GAAR mostly used in an acronym General in Category Computing that means General Anti Avoidance Rules
Shorthand: GAAR,
Full Form: General Anti Avoidance Rules
For more information of "General Anti Avoidance Rules", see the section below.
Essential Questions and Answers on General Anti Avoidance Rules in "COMPUTING»GENERALCOMP"
What is GAAR?
GAAR stands for General Anti-Avoidance Rules. It is an Indian tax law introduced in 2012 with the goal of preventing taxpayers from entering into transactions intended to avoid or reduce their tax liabilities.
What are the goals of GAAR?
The main goal of GAAR is to encourage taxpayers to follow ethical practices while paying their taxes and make sure that they pay the correct amount of taxes on their income.
Are there any exceptions to GAAR?
Yes, there are certain exceptions under which a taxpayer can avail himself/herself from being subjected to the provisions of India's General Anti Avoidance Rules (GAAR). These include transactions made for genuine business reasons, transfers made before April 1, 2017 and investments made in certain foreign countries with which India has entered into Double Taxation Avoidance Agreement (DTAA).
How does GAAR affect taxpayers?
Despite its intention, many experts believe that GAAR can have a negative effect on taxpayers as it gives excessive power to the Income Tax Department in determining whether an arrangement or transaction was done only for the purpose of tax avoidance. This can lead to disputes and could lead to harsh penalties if found guilty.
Is GAAR applicable only in India?
No, similar anti-avoidance rules have been adopted by various other countries such as Australia, Canada, New Zealand and Singapore. Countries like UK and USA also have similar laws where specific issues are addressed through special legislation or rulings issued by respective courts or revenue authorities.
Final Words:
In conclusion, General Anti-Avoidance Rules (GAAR) is an Indian tax law aimed at helping prevent taxpayers from entering into arrangements intended for minimizing their liability towards taxes due. While it does provide significant advantages for the government in terms of collecting accurate levels of tax payments from individuals, it also adds complexity and additional responsibilities for individuals who are subjecting themselves to these laws. There might be several exceptions available under this rule but compliance requirements remain strict nevertheless.
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