Investors breathe easy, no more retrospective taxation

The fact that the govt decided to come up with an amendment speaks highly of its commitment towards the international investor community

The Finance Minister has introduced a bill in the Parliament today, which intends to overwrite the retrospectivity of the amendment proposed during 2012 in relation to indirect transfer, which had drawn widespread criticism both among the corporate as well as in the professional circles across the globe. This amendment is a historic change because not only it clarifies that no further orders shall be passed on a retrospective basis, it also clarifies that even the orders that were passed on retrospective basis against the taxpayers in the past, would be invalidated. Thus, Finance Minister Nirmala Sitharaman has gone one step