CBDT releases draft regulations for withdrawal of retro tax demands

The income tax department on Saturday released the much-awaited draft rules for the legislation pertaining to the withdrawal of retrospective amendment in taxation concerning entities including Cairn Energy and Vodafone in lieu of irrevocable withdrawal of all legal cases against the government.

The government passed the Taxation Laws (Amendment) Act 2021 in Parliament earlier this month offering a settlement of the retrospective cases pertaining to the 2012 legislation on the offshore indirect transfer of Indian assets.

The draft rules released by the tax department call for a declaration by the companies to “irrevocably withdraw, discontinue and not pursue” any legal proceedings. These