Govt brings bill to junk retrospective taxes; Voda, Cairn disputes to end
Retrospective Tax: The bill will come as a relief to companies such as Cairn Energy and Vodafone and will likely end legal dispute with govt
Finance Minister Nirmala Sitharaman on August 5 introduced the Taxation Laws (Amendment) Bill, 2021 in the Lok Sabha. The bill seeks to withdraw the contentious retrospective tax nearly a decade after its introduction.
The bill will come as a relief to companies such as Cairn Energy and Vodafone and will likely end the legal dispute with the government.
“The Bill proposes to amend the Income-tax Act, 1961 so as to provide that no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012,” Finance Minister Nirmala Sitharaman said.
According to the amendment, tax raised for the indirect transfer of Indian assets before May 2012 would be nullified on fulfillment of conditions.