Question

Indian Government is planning to introduce GAAR. What is the purpose of GAAR?

• A. Increase rural income
• B. Increase agriculture income
• C. Regulatory authority for managing agriculture resources
• D. Regulate foreign investment in agriculture
• E. Curtail tax avoidance

Hint:

GAAR is a tax-related measure; focus on its anti-avoidance purpose.

Answer 1

Answer: (E)

Step 1: Understand GAAR.
GAAR (General Anti-Avoidance Rule) is a set of tax regulations aimed at preventing tax evasion and avoidance.
Step 2: Match with the options.
The purpose of GAAR is to curtail tax avoidance, which aligns with option (E).
Step 3: Eliminate distractors.
(A) Increasing rural income - not the focus of GAAR.
(B) Increasing agriculture income - unrelated to tax rules.
(C) Regulatory authority for agriculture - not applicable.
(D) Regulate foreign investment - a different policy area.
Therefore: The correct answer is (E). \[ \boxed{\text{E}} \]