§ 178
Chapter XI — General Anti-A Voidance Rule
Applicability of General Anti-Avoidance Rule
Income-tax Act, 2025
The General Anti-Avoidance Rule allows tax authorities to declare certain arrangements as impermissible if they are deemed to be tax avoidance schemes. This rule applies to any part of an arrangement, not just the entire arrangement. Consequences of such arrangements will be determined based on the provisions of this chapter. Key points to consider include:
- arrangements that may be declared impermissible
- consequences of such declarations
📜 Official text of the section +
178. (1) Irrespective of anything contained in this Act, an arrangement entered
into by an assessee may be declared to be an impermissible avoidance ar -
rangement and the consequence in relation to tax arising from it may be determined
subject to the provisions of this Chapter.
(2) The provisions of this Chapter may be applied to any step in, or a part of, the
arrangement as they are applicable to the arrangement.
Impermissible avoidance arrangement.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.