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.

The government has assured that all Income Tax cases which have been finalized by the 1st of April this year will not be reopened. 

This was stated by Finance Minister Pranab Mukherjee after inaugurating a new office of the Income Tax Department named Pratyaksh Kar Bhawan in New Delhi today. Mr. Mukherjee said, Central Board of Direct Taxes, CBDT has issued a circular in this regard.

Talking about the issue of transfer pricing and international taxation, Mr. Mukherjee said that a Committee has been constituted to resolve it. The group has held its first meeting on 25th of this month.

On the basis of the advice given by the Committee, a circular has been issued to avoid multi- level tax deducted at source. It was a concern expressed byccc. The Minister said that it has been taken care of.

The Centre has fixed a target of five lakh 70 thousand crore rupees direct tax collection this year. Inaugurating an Aaaykar Sewa Kendra in Kolkata this morning the Finance Minister Pranab Mukherjee said that besides this target government desires that the direct tax collection should reach 12 percent of the GDP. Referring to the various customer friendly steps for tax payers Mr. Mukherjee said that the aim is to promote more and more voluntary tax compliance. The Finance Minister said that two Income Tax Offices will be opened at Durgapur and Jalpaigudi of West Bengal soon.

The Central Board of Direct Taxes, CBDT, has constituted an advisory group for International Taxation and Transfer Pricing. The 13 members group will be headed by Revenue Secretary. A Finance ministry release says, the others members of the group include Chairman of CBDT, Director General of Income-tax , Joint Secretary of Department of Revenue, and representatives of Chamber of Commerce and Industry of the country.