No retrospecive applicability – Finally big relief for Vodophone and Cairns.

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No retrospecive applicability – Finally big relief for Vodophone and Cairns.

 

The Taxation Laws (Amendment ) Bill, 2021 introduced by FM today in the Lok Sabha  is about withdrawing retrospective amendment made in 2012 of taxing capital gains arising from indirect transfer of assets located in India.
This will settle issue of arbitration as under Indian Income Tax  Act itself no tax will be leviable on such capital gains up to 28th May,2012 when this amendment came into force .
Full amount of tax will have to be refunded but without interest as a specific provision inserted of no interest on such refund under section 244A.
Demand created before 28th May,2012 will be nullified in 17 cases including 2 cases where there is stay . Undertaking to be furnished by these entities that no claim , damages, interest etc shall be filed.
Finally, corrective measures taken !!

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