'There are certain exclusions from the provisions of General Anti Avoidance Rules (GAAR).' Briefly discuss those exclusions with regards to Income Tax Rules, 1962.

Rule 10U of the Income-tax Rules, 1962 provides for certain exclusions from the provisions of General Anti Avoidance Rules (GAAR), which are discussed below: Monetary Threshold: There is a monetary threshold of ₹ 3 crores for the applicability of GAAR. The threshold has to be seen with respect to each assessment year. Also, the threshold is not taxpayer-specific and it has to be determined with regard to all the parties to the arrangement. Exemption to Foreign Institutional Investors (FII) and Foreign Portfolio Investors: The provisions of GAAR are not applicable to an FII Who is an assessee under the Act Who has not taken benefit of any double taxation avoidance agreement Who has invested in listed securities, or unlisted securities, with the prior permission of the competent authority Investments in FIIs: The provisions of GAAR shall not apply to a person who is a non-resident in relation to investment made by him by way of offshore derivative instruments or otherwise, directly or indirectly in a FII.