What Does GAAR Stand For?

GAAR stands for General Anti Avoidance Rule Tax Evasion

The General Anti-Avoidance Rule (GAAR) is a legal framework designed to prevent tax evasion through the abuse of tax laws. It empowers tax authorities to challenge and deny the tax benefits obtained from arrangements or transactions that, while compliant with the letter of the law, are deemed to contravene its spirit. GAAR aims to promote fairness in the tax system by discouraging artificial tax avoidance schemes and ensuring that taxpayers adhere to the intended purpose of tax regulations.