The Centre on Thursday presented the Taxation Laws (Amendment) Bill to lead closure to the retrospective income tax law which was begun in 2012. Once the amendments are established, there will be no event like that of Cairn energy or Vodafone that may take place.
The finance ministry said in a statement
“The Bill aims to improve the Income-tax Act, 1961 so as to present that no tax demand shall be established in future on the base of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was initiated before 28th May 2012 (i.e., the date on which the Finance Bill, 2012 received the assent of the President),”
The government stated
“It is moreover intended to present that the demand boosted for indirect transfer of Indian assets made before 28th May 2012 shall be repealed on the satisfaction of specified requirements such as removal or furnishing of undertaking for withdrawal of pending case and furnishing of an undertaking to the effect that no requirement for cost, damages, interest, etc., shall be registered. It is also offered to return the amount paid in these cases without any interest thereon,”
THE TAXATION LAWS (AMENDMENT) BILL, 2021