{"id":89747,"date":"2025-06-01T10:11:56","date_gmt":"2025-06-01T10:11:56","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89747"},"modified":"2025-06-01T10:11:56","modified_gmt":"2025-06-01T10:11:56","slug":"which-of-the-statements-given-below-is-are-correct-1-in-india-th","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/","title":{"rendered":"Which of the statements given below is\/are correct ?\n  1. In India, th"},"content":{"rendered":"<p>Which of the statements given below is\/are correct ?<\/p>\n<ul>\n<li>1. In India, the provisions of General Anti-Avoidance Rule (GAAR) will be implemented with effect from 1 April 2015<\/li>\n<li>2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below :<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2014<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2014.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2014\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015.<br \/>\nStatement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; GAAR implementation date: 1 April 2017.<br \/>\n&#8211; GAAR&#8217;s purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit.<br \/>\n&#8211; GAAR applies to: Any taxpayer (resident or non-resident).<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nGAAR empowers tax authorities to deny tax benefits arising from arrangements considered impermissible avoidance arrangements. An arrangement is considered impermissible if its main purpose is to obtain a tax benefit and it lacks commercial substance, creates rights\/obligations not ordinarily created, or involves transactions that are not at arm&#8217;s length. Concerns were raised by foreign investors about the potential for discretionary application of GAAR, which led to the deferral of its implementation.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the statements given below is\/are correct ? 1. In India, the provisions of General Anti-Avoidance Rule (GAAR) will be implemented with effect from 1 April 2015 2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors Select the correct answer using the code given below : [amp_mcq option1=&#8221;1 only&#8221; &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the statements given below is\/are correct ?\n  1. In India, th\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/#more-89747\">Detailed Solution<span class=\"screen-reader-text\">Which of the statements given below is\/are correct ?<br \/>\n  1. In India, th<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1468,1120,1196],"class_list":["post-89747","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1468","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the statements given below is\/are correct ?  1. In India, th<\/title>\n<meta name=\"description\" content=\"Statement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015. Statement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions. - GAAR implementation date: 1 April 2017. - GAAR&#039;s purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit. - GAAR applies to: Any taxpayer (resident or non-resident).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the statements given below is\/are correct ?  1. In India, th\" \/>\n<meta property=\"og:description\" content=\"Statement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015. Statement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions. - GAAR implementation date: 1 April 2017. - GAAR&#039;s purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit. - GAAR applies to: Any taxpayer (resident or non-resident).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:11:56+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the statements given below is\/are correct ?  1. In India, th","description":"Statement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015. Statement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions. - GAAR implementation date: 1 April 2017. - GAAR's purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit. - GAAR applies to: Any taxpayer (resident or non-resident).","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/","og_locale":"en_US","og_type":"article","og_title":"Which of the statements given below is\/are correct ?  1. In India, th","og_description":"Statement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015. Statement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions. - GAAR implementation date: 1 April 2017. - GAAR's purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit. - GAAR applies to: Any taxpayer (resident or non-resident).","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:11:56+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/","name":"Which of the statements given below is\/are correct ? 1. In India, th","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:11:56+00:00","dateModified":"2025-06-01T10:11:56+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 1 is incorrect. The General Anti-Avoidance Rule (GAAR) was introduced in the Finance Act, 2012, with an initial proposed date of implementation from 1 April 2014. However, its implementation was postponed based on recommendations from the Shome Committee. The Finance Act, 2015, deferred the implementation of GAAR to 1 April 2017. Therefore, it was not implemented with effect from 1 April 2015. Statement 2 is correct. While GAAR is applicable to all taxpayers (both residents and non-residents) engaging in tax avoidance arrangements, a significant part of the concern it aimed to address was tax avoidance by overseas investors structuring their investments or transactions in India to exploit tax treaties or other loopholes. Thus, checking tax avoidance by overseas investors was indeed one of the aims of the GAAR provisions. - GAAR implementation date: 1 April 2017. - GAAR's purpose: Counter aggressive tax planning and arrangements whose main purpose is to obtain a tax benefit. - GAAR applies to: Any taxpayer (resident or non-resident).","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-statements-given-below-is-are-correct-1-in-india-th\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"Which of the statements given below is\/are correct ? 1. 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