Prime Minister's Office today said that Draft Guidelines on General Anti-Tax Avoidance Rules, GAAR, have been put on the government website to get wide-ranging feedback on the issue. An official release issued by the PMO says, the final decision will be taken with the approval of the Prime Minister who holds the Finance portfolio.

The draft GAAR guidelines were posted on the website by the Finance Ministry late last night. The proposed guidelines seek to address investor concerns over taxation issues. The draft said that GAAR provisions would be invoked only in cases where FIIs choose to take the benefit of double tax avoidance treaties. The provisions, it said, will apply only to the income arising to taxpayers on or after April 1, 2013.

According to the Finance Ministry release, the Central Board of Direct Taxes, CBDT has invited suggestions on draft Guidelines regarding the implementation of GAAR. Details are available on the websites www.pib.nic.in, www.finmin.nic.in and www.incometaxindia.gov.in. The suggestions on the draft guidelines can be forwarded to the concerned department till the 20th of next month. The Prime Minister has already announced his intent to rework the tax framework. During his first meeting with the Finance Ministry brass on Wednesday, Dr Singh said that reviving investors' sentiments will be his top priority. He also hinted at accelerating the financial sector reforms, including those in the insurance and mutual funds sectors and said, some quick measures will have to be taken to address them.