Govt. issues clarification on GAAR guidelines, to prevent tax evasion

New Delhi, June 29 (ANI): The government on Friday issued a clarification regarding the General Anti-Avoidance Rule (GAAR) guidelines released last evening, saying it has not seen by Prime Minister Dr. Manmohan Singh and will be finalised only after the former's approval who also holds the Finance Ministry portfolio now.

"The GAAR guidelines that have been put up on the government website from the official level of the Finance Ministry and shared with some stakeholders are only Draft Guidelines and have been put out for receiving wide-ranging feedback and for discussion purposes only," said a PMO release.

"These have not been seen by the Prime Minister and will be finalised with the approval of the Prime Minister, who holds the Finance portfolio, only after considering the feedback received," the release adds.

The government yesterday published draft rules of the GAAR that seeks to empower taxmen to clampdown on deals and income suspected to have been structured in a particular way only to avoid paying taxes. (ANI)