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

The expanded firm will comprise roughly 8,500 employees, including 550 partners; in other news, Paul Hastings and Macfarlanes made senior tax hires
Meanwhile, one expert highlights the importance of separating Venezuela’s tax authority from direct political control after ‘lost decades and isolation’
With PMK 108, Indonesia has upgraded its tax transparency regime for the digital era, focusing on data quality, governance, and cross border exchange rather than expanding regulatory reach
In a popular LinkedIn post, Jeremie Beitel encouraged firms to invest in junior talent even if it doesn’t lead to their loyalty, though recruiters offered ITR a mixed assessment
Advisers who do not register for the new regime in time could be prevented from interacting with HMRC, the tax authority said
Valid pillar two objectives are still intact after the side-by-side agreement, but whether the framework is now settled is ‘a $64,000 question’, Morrison Foerster’s tax chair told ITR
Ian Halligan previously led Baker Tilly’s international tax services in the US
Exclusive ITR data emphasises that DEI does not affect in-house buying decisions – and it’s nothing to do with the US president
The firms made senior hires in Los Angeles and Cleveland respectively; in other news, South Korea reported an 11% rise in tax income, fuelled by a corporation tax boom
The ‘deeply flawed’ report is attempting to derail UN tax convention debates, the Tax Justice Network’s CEO said
Gift this article