<h1>Indian Government Modifies GAAR; Defines Tax Avoidance, Restructures Panel, Sets Rs. 3 Crore Threshold, Delays Implementation to 2016.</h1> The Indian government has accepted major recommendations from an Expert Committee on General Anti Avoidance Rules (GAAR), with modifications. Key decisions include defining impermissible tax avoidance arrangements, requiring assessing officers to issue show cause notices, and providing taxpayers opportunities to prove compliance. The Approving Panel will be restructured to include legal and academic experts. GAAR will not apply to certain foreign institutional investors, and investments before August 30, 2010, will be grandfathered. A monetary threshold for GAAR applicability is set at Rs. 3 crore. The implementation of Chapter X-A is postponed to April 1, 2016.