Discuss in brief some distinguishing features of General Anti-Avoidance Rules (GAAR) and Specific Anti-Avoidance Rules (SAAR).

Distinguishing features of General Anti Avoidance Rules (GAAR) These involve necessarily granting the discretion to the tax authorities to invalidate the arrangements as impermissible tax avoidance. They have a far broader application and hence interpreted in a more extensive manner. GAAR has the potential to counter more effectively and outsmart the tax payers in their "out of box thinking" and their approach in devising new means of tax avoidance. Distinguishing features of Specific Anti Avoidance Rules (SAAR) These are specific and help reduce to time and cost involved in tax litigation. These provide certainty to any taxpayer while formalising specific arrangements. These don't provide any discretion to the tax authorities. There is always a possibility that the tax payer may find loopholes and circumvent the limited applications of specific provisions.