The Central Board of Direct Taxes (CBDT) issued Notification No. 49/2016 (the Notification) dated 22 June 2016 on the effective date of the general anti-avoidance rules (GAAR).
According to the Notification, the amendments to the Income Tax Rules, 1962 are as follows:
-As per Rule 10U(1)(d), the GAAR provisions do not apply to any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any persons from the transfer of investments made before 1 April 2017 (previously 30 August 2010); and
–As per Rule 10U(2), the GAAR provisions apply to any arrangement, irrespective of the date on which it was made, whereby any tax benefit is obtained from such arrangement on or after 1 April 2017 (previously 1 April 2015).
