Highlights of Taxation Laws (Amendment) Bill 2021 (To end retro tax on Indirect transfer)
The objective of Taxation Laws (Amendment) Bill 2021 is to make the indirect transfer provision apply prospectively i.e from May 2012. Consequently, all existing and future retrospective tax demands are sought to be nullified on this matter. Taxpayers who were impacted will need to withdraw proceedings in court or arbitration forums. Any amounts collected will be paid back in full by the tax authorities (without interest).
This is a bold move that addresses the concerns of many foreign investors. It also puts to an end many of the past arbitration cases pending which have created great embarrassment for India in international circles.
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