Difference between GAAR and SAAR

GAAR (General Anti-Avoidance Rules) is a broad, subjective framework used as a last resort to block aggressive tax avoidance schemes that lack commercial substance (applicable for tax benefits over ₹3 Crores). SAAR (Specific Anti-Avoidance Rules) consists of explicit, targeted provisions already written into the law (like Transfer Pricing or gift tax rules) that automatically apply to specific transactions regardless of intent or amount.