Key changes to I-T Bill

ANOTHER IMPORTANT SUGGESTION of the panel, which has been accepted by the government, is to make the application of the General Anti-Avoidance Rules (GAAR) context-specific, rather than indiscriminate.

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While Section 98 of the I-T Act states that if a transaction is found to be designed primarily for tax avoidance, then the relevant tax benefit would be subject to review, but only after taking into consideration the "circumstances of the case." This clause is absent in the draft Bill. It would now be inserted, with the committee saying that GAAR should be judiciously applied.