The General Anti Avoidance Rule, often abbreviated as GAAR, was announced in the Union Budget 2012 to 2013 and later deferred. It was finally implemented in India from which date?

Introduction / Context:
This question belongs to the field of direct tax reforms and international taxation. The General Anti Avoidance Rule is a framework that allows tax authorities to deny tax benefits arising from transactions that are judged to be primarily tax avoidance arrangements rather than genuine commercial activities. In India, GAAR was proposed in the Union Budget 2012 to 2013 but its implementation was postponed multiple times after consultation with stakeholders. The question requires recalling the final date from which GAAR came into effect.

Given Data / Assumptions:

• GAAR stands for General Anti Avoidance Rule.
• It was announced earlier and then deferred.
• The options list four possible implementation dates, all on 1 April of different years.
• Only one of these matches the final notified date for GAAR coming into force.

Concept / Approach:
Originally proposed to start in 2013, the implementation of GAAR was deferred to provide clarity and to avoid affecting genuine foreign investment. After revisions and guidelines, the government decided that GAAR provisions would apply from assessment year 2018 to 2019, corresponding to financial year 2017 to 2018. This means that the operational date for GAAR in terms of tax law became 1 April 2017. Therefore, among the four date options, 1 April 2017 is the correct answer.

Step-by-Step Solution:
Step 1: Recall that GAAR was postponed from its originally proposed start due to concerns from investors and industry. Step 2: Remember that after several deferments, the government fixed a final date for its introduction. Step 3: Link GAAR implementation with financial year 2017 to 2018, which begins on 1 April 2017. Step 4: Compare this with the four options and identify 1 April 2017 in the list. Step 5: Mark 1 April 2017 as the correct implementation date.

Verification / Alternative check:
If one remembers that GAAR started applying from assessment year 2018 to 2019, an easy way to verify is to subtract one year to get the previous financial year, which is 2017 to 2018, beginning on 1 April 2017. Budget speeches and Central Board of Direct Taxes circulars also mention that GAAR would be implemented from this date. Since the other options correspond either to earlier plans or to dates not associated with GAAR decisions, this cross check confirms that 1 April 2017 is correct.

Why Other Options Are Wrong:
1 April 2015 and 1 April 2016 were considered at various points during discussions on implementation but do not represent the final adopted date. These years appear in early proposals or in media speculation but were later superseded. 1 April 2018 would be one year too late when compared with the actual enforcement timeline. Therefore, none of these dates match the official commencement of GAAR provisions in the Indian tax system.

Common Pitfalls:
Students often confuse announcement and implementation years. Because GAAR was first discussed in 2012 to 2013 and then deferred, some candidates incorrectly pick earlier years such as 2015 or 2016 out of habit. Others may assume that major reforms began only from 2018 and choose that year. The best way to avoid this confusion is to memorise the link between GAAR and assessment year 2018 to 2019, which directly points to financial year 2017 to 2018 and hence to 1 April 2017 as the start date.

Final Answer:
The General Anti Avoidance Rule was finally implemented in India with effect from 1 April 2017.