<h1>GAAR Rules Prevent Tax Avoidance; Exemptions for Pre-2017 Investments and Non-Tax-Benefit Arrangements Clarified by CBDT.</h1> The General Anti Avoidance Rule (GAAR) provisions, effective from the Assessment Year 2018-19, aim to prevent tax avoidance under the Income Tax Act, 1961. Clarifications issued by the Central Board of Direct Taxes (CBDT) state that GAAR will not apply if the main purpose of an arrangement is not to obtain tax benefits. Grandfathering provisions apply to certain investments made before April 1, 2017. GAAR will not interfere with taxpayer rights to choose transaction methods and will not apply if arrangements are approved by relevant authorities. Procedural safeguards ensure GAAR's fair application, with further clarifications available if needed.