The PM appointed panel, headed by Parthasarathi Shome, recommended for extending the deadline for implementation of the rules by three years. As per earlier recommendations, the guidelines were to come into effect from April 2013.
Some of the other recommendations by the panel are
- Expanding the scope of GAAR to all Non-resident Indian (NRI) taxpayers
- Grandfathering investments till GAAR comes into force
- Abolishishing capital gains tax on FIIs
- Hike in securities transaction tax (STT) rate
- Threshold of Rs. 3 crore for not invoking GAAR
General Anti-Avoidance Rules (GAAR) is the central theme of the Direct Tax Code (DTC), but the government made it a part of the Budget this fiscal.
The draft recommendations were submitted to FM P Chidambaram and it has been placed for public comments until September 15.
Prominent personalities from Industries have welcomed the recommendation as it will clear the air for Tax uncertainty currently prevailing .