Chapter XI of the Income-tax Act, 2025, under which an arrangement may be declared an impermissible…

Chapter XI (sections 178 to 184) of the Income-tax Act, 2025 is titled "General Anti-Avoidance Rule", commonly abbreviated as GAAR. Under section 178(1), an arrangement may be declared an impermissible avoidance arrangement and its tax consequences determined, and section 179 describes such an arrangement as one whose main purpose is to obtain a tax benefit and which has one of the features listed there, such as lacking commercial substance. This corresponds to Chapter X-A (sections 95 to 102) of the repealed Income-tax Act, 1961.