On March 31, 2026, the Central Board of Direct Taxes (CBDT) amended the General Anti-Avoidance Rule (GAAR) to clarify that income from investments made before April 1, 2017, will not be subject to GAAR scrutiny, regardless of when the sale occurs. GAAR, introduced in India in 2012, allows tax authorities to disregard tax-saving arrangements that appear legal but are primarily designed to avoid taxes. This amendment addresses uncertainties stemming from a Supreme Court ruling in January regarding the Tiger Global case and emphasizes the government's intent to protect legacy investments. Tax experts, including Tushar Sachade from Price Waterhouse & Co LLP, have welcomed the change as a pragmatic step that enhances India's appeal to foreign investors. While the amendment specifically protects capital gains from older investments, it does not alter the outcomes of cases like Tiger Global, which involved indirect transfers. Experts caution that income types other than capital gains, such as dividends, may still face GAAR scrutiny. Overall, the clarification is expected to provide much-needed certainty for investors and reinforce India's position as a favorable destination for long-term capital.