Retro Tax: In total 17 cases including Vodafone, Cairn, there was a dispute regarding the collection of tax on capital gains from old dates.
Retro Tax Rollback Bill: The Modi government has taken a big initiative to end the ongoing tax dispute with many companies. The government has decided to withdraw the provision of retrospective tax demand. For this, the Retro Tax Rollback Bill was introduced in the Lok Sabha on Thursday. According to the amendment proposal introduced by the government in the Lok Sabha, the rule of collection of tax on capital gains will be abolished from the old dates.
Government can refund
A special thing in this is that the government can refund the old collected tax without interest. Companies will have to give in writing that they will not make any further claim. After the setback in Vodafone and Cairn case, the government has decided to do away with this rule. In total 17 cases including Vodafone, Cairn Energy, there was a dispute regarding such tax collection. Let us tell you, in the year 2012, the tax demand was made from the previous dates by changing the law. Capital gains tax was sought on indirect transfer cases.
Finance Minister introduced the bill
Finance Minister Nirmala Sitharaman introduced the Taxation Laws (Amendment) Bill, 2021 in the Lok Sabha on 5 August. In which there is a provision to withdraw the tax demand made on indirect transfer of Indian properties before 28 May 2012. The bill says, “These cases of tax disputes also include a provision for refund without interest.” will have an effect.
