Retrospective Tax Amendment: Tax Experts Analyse Reasons & Consequences

Video Reporter/Producer: Karan Tripathi

Video Editor: Mohd Irshad Alam

The central government has tabled the bill to amend the Income Tax Act, 1961. This amendment gains importance as it will scrap the controversial retrospective tax provisions that were introduced in 2012.

The proposed bill states, 'no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012.'

After long legal battles with global conglomerates like Cairn Energy and Vodafone, in the Supreme Court as well as international court, the government has finally proposed these amendments.

The Quint talked to Professor Prabhash Ranjan and Advocate Deepak Joshi to understand what led the government to scrap retrospective tax clause suddenly after 7 years in power.