Exception of General Anti Avoidance Rule - (New) Rule 128 / (Old) Rule 10U

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....ional Investor should be liable to assessment under the Income-tax Act. (ii) FII Must Not Claim Treaty Benefits - who has not taken benefit of an agreement referred to in section 159; and (iii) Investment Must Comply with SEBI Regulations -  • Investment should be made: • in listed securities; or • unlisted securities with prior approval, • with the prior permission of the competent authority, in accordance with the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), in relation to such investments. (c) E....

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....rd of India Act, 1992 (15 of 1992); • (d) "tax benefit", as defined in section 184(11) and computed in accordance with Chapter XI, shall be with reference to- • (i) section 184(11)(a) to (e), the amount of tax; and • (ii) section 184(11)(f), the tax that would have been chargeable had the increase in loss referred to therein been the total income. Under Rule 10U of the Income Tax Rule 1962 [ Upto 31.03.2026 ] Cases Where GAAR Shall Not Apply [ Rule 10U(1) ] The provisions of Chapter X-A shall not apply to - (a) Monetary Threshold Exemption • GAAR shall not apply to  an arrangement where the tax benefit in the relevant assessment year aris....

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.... • any person from transfer of investments made before the 1st day of April, 2017 by such person. Prospective Application of GAAR with Grandfathering Protection [ Rule 10U(2) ] • Without prejudice to the provisions of clause (d) of rule 10U(1), the provisions of Chapter X-A shall apply to any arrangement, irrespective of the date on which it has been entered into, in respect of the tax benefit obtained from the arrangement on or after the 1st day of April, 2017. Definitions for Applying Rule 10U [ Rule 10U(3) ] • (i) "Foreign Institutional Investor" shall have the same meaning as assigned to it in the Explanation to section 115AD; • (ii) "off shore derivative instru....