The General Anti Avoidance Rules, GAAR, which seeks to check tax avoidance by investors routing their funds through tax havens, will come into effect from April 1, 2016. A government notification said, the GAAR will apply to entities availing tax benefit of at least 3 crore rupees. It will apply to foreign institutional investors, FIIs that have claimed benefits under any Double Tax Avoidance Agreement, DTAA. Investments made by a non-resident by way of offshore derivative instruments or P-Notes through FIIs, will not be covered by the GAAR provisions.The notification said, investments made before August 30, 2010, will not be scrutinised under GAAR