{"id":93831,"date":"2025-06-01T11:58:22","date_gmt":"2025-06-01T11:58:22","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=93831"},"modified":"2025-06-01T11:58:22","modified_gmt":"2025-06-01T11:58:22","slug":"what-is-the-general-anti-avoidance-rule-gaar","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-general-anti-avoidance-rule-gaar\/","title":{"rendered":"What is the General Anti-Avoidance Rule (GAAR) ?"},"content":{"rendered":"<p>What is the General Anti-Avoidance Rule (GAAR) ?<\/p>\n<p>[amp_mcq option1=&#8221;GAAR is a set of rules aimed at curbing aggressive tax planning.&#8221; option2=&#8221;GAAR is a set of rules aimed at curbing money laundering by Indians to foreign countries.&#8221; option3=&#8221;GAAR is a set of rules aimed at regulating investments by Indians in foreign countries.&#8221; option4=&#8221;GAAR is a set of rules aimed at regulating investments by foreigners in India.&#8221; correct=&#8221;option1&#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 Combined Section Officer &#8211; 2024<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-combined-section-officer-2024.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-combined-section-officer-2024\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct answer is GAAR is a set of rules aimed at curbing aggressive tax planning (A).<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nThe General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. It gives tax authorities the power to deny tax benefits that arise from such arrangements.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nGAAR is distinct from rules targeting money laundering (which falls under anti-money laundering laws like PMLA in India) or rules regulating cross-border investments (which are part of FEMA and RBI regulations). GAAR specifically focuses on arrangements considered &#8216;impermissible avoidance arrangements&#8217; under the Income Tax Act, where the main purpose is to obtain a tax benefit and the arrangement lacks commercial rationale.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>What is the General Anti-Avoidance Rule (GAAR) ? [amp_mcq option1=&#8221;GAAR is a set of rules aimed at curbing aggressive tax planning.&#8221; option2=&#8221;GAAR is a set of rules aimed at curbing money laundering by Indians to foreign countries.&#8221; option3=&#8221;GAAR is a set of rules aimed at regulating investments by Indians in foreign countries.&#8221; option4=&#8221;GAAR is a &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What is the General Anti-Avoidance Rule (GAAR) ?\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-general-anti-avoidance-rule-gaar\/#more-93831\">Detailed Solution<span class=\"screen-reader-text\">What is the General Anti-Avoidance Rule (GAAR) ?<\/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":[1090],"tags":[1103,1120,1196],"class_list":["post-93831","post","type-post","status-publish","format-standard","hentry","category-upsc-combined-section-officer","tag-1103","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>What is the General Anti-Avoidance Rule (GAAR) ?<\/title>\n<meta name=\"description\" content=\"The correct answer is GAAR is a set of rules aimed at curbing aggressive tax planning (A). The General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. It gives tax authorities the power to deny tax benefits that arise from such arrangements.\" \/>\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\/what-is-the-general-anti-avoidance-rule-gaar\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the General Anti-Avoidance Rule (GAAR) ?\" \/>\n<meta property=\"og:description\" content=\"The correct answer is GAAR is a set of rules aimed at curbing aggressive tax planning (A). The General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. 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The General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. It gives tax authorities the power to deny tax benefits that arise from such arrangements.","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\/what-is-the-general-anti-avoidance-rule-gaar\/","og_locale":"en_US","og_type":"article","og_title":"What is the General Anti-Avoidance Rule (GAAR) ?","og_description":"The correct answer is GAAR is a set of rules aimed at curbing aggressive tax planning (A). The General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. 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The General Anti-Avoidance Rule (GAAR) is a tax legislation designed to tackle aggressive tax planning arrangements that are primarily aimed at obtaining a tax benefit, without commercial substance or purpose other than tax avoidance. 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