The Central Board of Direct Taxes (CBDT) has issued a clarification stating that investments made in India before April 1, 2017, are outside the scope of the General Anti Avoidance Rules (GAAR). This amendment, announced on Wednesday, refines previous language that was criticized for its ambiguity. GAAR allows tax authorities to deny benefits for transactions aimed primarily at tax avoidance. The clarification is particularly significant following the Supreme Court's January ruling regarding Tiger Global's 2018 sale of Flipkart to Walmart, which deemed the transaction taxable in India despite claims of grandfathering benefits for earlier investments. Sandeep Sehgal, a partner at AKM Global, noted that this change helps remove uncertainty around GAAR and reinforces the intent that legacy investments remain exempt. The amendment does not change the outcome of the Tiger Global case but provides clarity on how GAAR interacts with grandfathering provisions. Sandeepp Jhunjhunwala from Nangia Global Advisors emphasized that the revised language explicitly protects capital gains from these investments from GAAR scrutiny, ensuring that GAAR applies only to arrangements made post-2017.