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Apr 01, 2026
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India grandfathered gains from investments made before April 2017
The Central Board of Direct Taxes said income from the transfer of investments made before April 1, 2017 will remain outside the ambit of general anti-avoidance rules (GAAR), providing clarity and relief to investors holding legacy assets.
In a notification issued late Tuesday night, the CBDT amended a Rule 128 of the Income-tax Rules, 2026, grandfathering gains from investments made before April 2017.
The amended rules state that GAAR provisions will apply to any arrangement that yields tax benefits on or after that date, regardless of when the arrangement was originally entered into.
The move is significant as it draws a clearer line between protected investments and arrangements open to tax scrutiny.
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