New Delhi: Within days of taking over the Finance Ministry, Prime Minister Manmohan Singh has got down to business.
To boost investor confidence, the Finance Ministry has proposed a monetary limit for invoking the controversial General Anti-Tax Avoidance Rules.
While the monetary limit has not been specified, the new draft says GAAR provisions will be applicable after a prescribed limit.
The guidelines further say that GAAR provisions would be invoked only in cases where Foreign investors choose to benefit from double tax avoidance treaties.
GAAR will only be applicable to the income arising to taxpayers on or after April 1, 2013.
There is a proposal to set up a 3-member approving panel to decide whether GAAR can be applied on a particular case or not.
The GAAR provisions were proposed by former Finance Minister Pranab Mukherjee in his budget to prevent tax evasion.