How many years deferment for General Anti-Avoidance Rules (GAAR) was announced in the Budget 2015-16?

a. 1 year

b. 2 year

c. 3 year

d. 4 year

ANSWER: 2 year

Explanation:

GAAR are framed to minimize tax avoidance, for example by siphoning off profits to tax havens. GAAR could be termed as a general set of rules enacted to limit tax avoidance. It was proposed by the Union Budget 2012-13. The finance bill 2012 introduced chapter X-A to the income Tax Act-1961. Tax avoidance rule GAAR was proposed to be effective from April 2015 for those claiming tax benefits of over Rs 3 crore but the present Finance Minister Arun Jaitley deferred the roll out of the GAAR by two years to April 1, 2017.