GAAR may not apply to investments

Investors coming via Mauritius and Singapore may breathe easy, as the provisions of the General
Anti-Avoidance Rules (GAAR) may not apply to their transactions. The government will also spare
investors of foreign institutional investors (FIIs) who route their investments through tax havens
provided the FII is a genuine residents the tax havens. To end uncertainty, a clarification will
also be issued on retrospective amendments.