Letters: Undisputed gains

This refers to the article “Vodafone ruling: A step back in investor relations” (September 13). Although it is true that any arrangement that aims at lawful tax avoidance is permissible, in the case of Vodafone it is substance rather than form of the arrangement that is the basis of the dispute between the Income Tax department and Vodafone.

The law in India is very clear on taxation of capital gains: unless otherwise exempt, all such gains would attract tax. To avoid disputes of a similar nature in the future, this is an opportunity to clearly state the unwritten law: all gains arising out of transfer of capital assets located and in use in India would be taxed. The direct taxes code (DTC) can include such a provision.

Narendra M Apte, Pune