New Delhi: The government will delay by two years the implementation of the controversial rules on tax avoidance to 2016, Finance Minister P. Chidambaram said on Monday, a decision which earned a positive market reaction and is likely to help attract more capital inflows.
The General Anti-Avoidance Rules (GAAR), aimed at companies and investors routing money through tax havens such as Mauritius, had been scheduled to be implemented from April 2014. They will now come into effect from April 1, 2016.
The BSE Sensex rose as much as 1 per cent after the news of the delay and after a slower-than-expect rise in inflation cemented hopes for an interest rate cut this month.
14/01/13 Reuters/NDTV.com
