GAAR to be applicable from FY14: FM

Finance Minister Pranab Mukhrjee today announced amendments in the General Anti-Avoidance Rule (GAAR). The following are the highlights of the announcement:

• Proposed retro amendments do not override DTAAs
• STT on sale of unlisted tax securities at 0.2%
• Remove onus of proof from tax payer
• Amending GAAR provision in Finance Bill
• GAAR deferred by one year, to be applicable from FY14
• Not to use retro amendments on cases where assessment final
• Hikes threshold for tax on gold jewellery to Rs 5 lakh
• Withdraws levy on all branded and non-branded jewellery
• Tax neutrality if foreign bks convert branches to subs
• Clarificatory proposals will not override tax treaties
• To introduce independent member to GAAR panel

Details awaited...