Govt scrapping retro tax an 'extremely positive development': Sanjay Tolia

This proposal demonstrates that the government is intent upon shoring up India's positive investor friendly image, says Partner, Price Waterhouse & Co LLP

In a bid to bury the ghost of retrospective taxation, the government on Thursday brought a bill in the Lok Sabha to withdraw all back tax demands on companies such as Cairn Energy and Vodafone and said it will refund about Rs 8,100 crore collected to enforce such levies.

Finance Minister Nirmala Sitharaman introduced 'The Taxation Laws (Amendment) Bill, 2021' in the Lok Sabha that seeks to withdraw tax demands made using a 2012 retrospective legislation on indirect transfer of Indian assets prior to May 28, 2012.

"It is also proposed to refund the amount paid in these cases without any interest