India's GAAR making progress, says new president

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


India's GAAR making progress, says new president

india-flag2.jpg

India’s new president, Pranab Mukherjee, has confirmed that consultations and review of the proposed general anti-avoidance rule (GAAR) had started before he stepped down as finance minister.

“GAAR, I also deferred it by one year (to April 2013) for further discussions. It (the new panel) can be treated as a continuing affair," Mukherjee told reporters, when asked about the setting up of a new four-member committee last week.

Foreign investors have raised concerns against the introduction of GAAR which was unveiled in a discussion paper in March’s budget.

Before he resigned on June 26, Mukherjee promised to put in place safeguards such as a threshold to ensure that officials would not harass taxpayers, as well as an independent panel.

He had also announced the government's intent to keep participatory notes, which are derivative instruments used by overseas investors several of whom are ineligible to invest in India.

Since Mukherjee’s departure, a document was released that contained all the safeguards, but prime minister Manmohan Singh, who has taken on the responsibility of finance minister in the absence of a replacement, will approve the final document.

Subsequently, the prime minister’s office set up a new committee under Parthasarthi Shome, chief executive of the Indian Council for Research on International Economic Relations, to look at the issue and effectively took away the mandate Mukherjee had given to an earlier panel comprising government officers, foreign institutional investor representatives and other stakeholders.

Comments can be submitted until the end of July and a second draft of the guidelines will be published by August 31. The final guidelines will be submitted to the government by September 30.

The draft GAAR guidelines will also be discussed at International Tax Review's third annual India Tax Forum in Delhi on September 5 & 6.

Confirmed speakers include:

  • RN Dash, ex-Director General of Income Tax (International Taxation), Government of India;

  • Girish Srivastava, ex-Director General of Income Tax (International Taxation), Government of India;

  • Mohan Parasaran, Senior Advocate, Supreme Court of India and Additional Solicitor General of India;

  • Prashant Bhatnagar, head of India tax, Procter & Gamble;

  • R Mani, head of India tax, Tata;

  • Ketan Madia, vice president, taxes, GE; and

  •  Bela Seth Mao, head of India tax, Shell.

The foremost Indian tax specialists will tackle this issue and more. It is a unique opportunity to hear their views, increase your understanding of the upcoming changes and how best to prepare for the future.



more across site & shared bottom lb ros

More from across our site

Advisers won’t be short of work in a world of increased valuation disputes, documentation requirements and behavioural responses from clients seeking to protect their wealth
Jaydeep Menon explains how Frazier & Deeter built a specialist practice which helps UK start-ups expand into the US and why private equity backing is accelerating its ambitions
As joint audits, data sharing and pillar two reshape tax controversy, multinational groups can no longer afford to manage disputes one jurisdiction at a time
Brazil's tax system is being reshaped by VAT , pillar two and TP reform. Fallet explains why those changes convinced him to lead a new practice
The agreement with Daribatech, alongside recent high-profile investment in talent, suggests the firm is gearing up for a significant push in the region
Several factors have led to a steady transition of TP work away from traditional advisers and towards full-service law firms, DLA Piper’s new TP leader says
Julian Balson's departure from EY's Tier 1 tax controversy practice for lower-ranked Fieldfisher represents one of the more eye-catching UK hires of the year
Former IRS commissioner Danny Werfel argues that the biggest obstacle to AI adoption in tax is not technology, but trust, and introduces a practical AI risk framework to help
Howell takes a deep dive into how he led the landmark PepsiCo dispute, discusses the ATO's enforcement priorities, and emphasises KordaMentha's market ambitions
Global tax leader David Linke said that the TaxSim gaming programme could replace aspects of traditional face-to-face learning
Gift this article