Head - Finance/Accounts
42 Points
Joined October 2013
Dear Ms.Devika Alva
G.A.A.R stands for General Anti Avoidance Rules.These rules are governed under I.T.Act'61 from 95-102 as against S.A.A.R(Sppecific Anti Avoidance Rules)
The basic idea for framing such rules is Tax Avoidance as contrasted from Tax Evasion & Tax Mitigation.
A.O has the authority to look thru the transaction as a whole or a step in process:
1) Commercial substance & prudence.
2) Substance over form
3) As against SAAR, GAAR covers all types of transaction entered into by the person.
4) G.A.A.R takes precedence against all sections of the I.T Act.
Hope this clarifies your doubts.
Feel free to post any queries on G.A.A.R
Regards
M.Srinivas Kumar
Bangalore
09986178069