Fact-check notes
Last fact-checked: 2026-05-26
Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year terminology applies for income earned from 1 April 2026 onward.
This page is written from official portal guidance and the supplied Batch 11 brief. Any future-dated form, rule or portal workflow should be verified in the active utility before filing or advising a client.
What this covers
GAAR is aimed at arrangements where tax benefit is the main purpose and the structure lacks commercial substance or abuses the law. High-value restructurings need documented business purpose.
- Section 178 and allied provisions should be read with commercial-substance tests and official guidance.
- The commonly cited Rs. 3 crore threshold should be checked against current rules before relying on it.
- GAAR is different from specific anti-avoidance rules and transfer pricing.
Who this is for
- Founder restructuring shareholding.
- Group creating holding entities.
- Company planning merger or acquisition.
- HNI using offshore structures.
Documents and data to verify
- Transaction documents.
- Board/business rationale.
- Valuation and tax note.
- Substance evidence.
- Treaty documents if relevant.
Common mistakes to avoid
- Structuring only for tax benefit.
- No board-level commercial rationale.
- Assuming treaty benefit is automatic.
- Ignoring transfer pricing and FEMA alongside GAAR.
How to proceed
- Confirm the applicable year, taxpayer type, state, registration status and portal form before acting.
- Reconcile the official portal data with books, bank statements, certificates, invoices and notices.
- Prepare a written computation, filing note, document checklist or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is the page a substitute for professional advice?
No. Use it to prepare. A professional should check the current portal utility, official source and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, opinion or representation.