Income Tax Act & Finance Act 2012 To Be Amended To Remove Retrospective Tax Demands Prior To May 28, 2012

Taxation Laws (Amendment) Bill, 2021 was introduced by the Finance Minister Nirmala Sitharaman in Lok Sabha on August 5. It’s a bill that seeks to do away with the contentious retrospective tax provision and will impact retro tax cases of Vodafone & Cairn Energy. The bill was introduced in the House among protests by opposition members. Their demand being probe into the allegations of surveillance through Pegasus spyware and also repeal of farm bills. Taxation Laws (Amendment) Bill proposes to amend the Income Tax Act, 1961 to provide that no tax demand shall be raised in future. This would be on the basis of the retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012 . Finance Bill, 2012 had received the assent of the President on this day. British oil and gas company Cairn Energy is seeking to recover $1.2 billion from India after winning an arbitration against retro tax. An appeal against the order was filed in the Hague Court of Appeal on March 22, 2021 by the Indian Government. Watch the video to know more.