India has anti-avoidance rules in its domestic tax laws and tax treaties through limitations of benefits. To further curb tax avoidance based on substance over form, Indian policymakers propose introducing General Anti-Avoidance Rules (GAAR) as one of the most significant tax reforms. Tax avoidance means the legal use of a country's tax regime to lessen taxes payable through legal means. It includes reducing taxes through legal transactions and using provisions like refunds, credits, and benefits.

2. India has specific anti-avoidance provisions
engraved both in the domestic tax laws and in
some of the tax treaties through the 'limitation
of benefits' clauses. However, in a bid to curb
tax avoidance and enforce the concept of
'substance over form', the Indian revenue
policymakers propose the introduction of one
of the most significant contemporary tax
reforms - the General Anti Avoidance Rules -
"GAAR"

3. Tax Avoidance means the tax regime's legal
use for one's own personal advantage so as to
lessen the tax amount that is payable to the
government by ways that are legal.
Avoidance Tax includes situations when
people eliminate or reduce tax by following a
transaction or many transactions that are legal.
The income tax department provides many
provisions through which the people can go
for Tax Avoidance such as
refunds, credits, benefits, and many other
kinds of entitlements.

4.  Legal entities
 Country of residence
 Double taxation