Gaar In 2026 : What The Latest Clarifications Mean For Legacy Investments

Introduction : Let’s consider the case of a foreign investor who invested in an Indian company prior to 1 April 2017 and aims to exit in 2026 via a restructuring. The investment was grandfathered, but it was unclear whether the subsequent transfer would be subject to the General Anti-Avoidance Rules (“GAAR”). The uncertainty was further compounded by the Supreme Court decision in the Authority for Advance Rulings (Income Tax) & Ors. v. Tiger Global International III, which confirmed that GAAR...