The Lok Sabha has passed the Taxation Laws (Amendment) Bill, which proposes to scrap the retrospective application of the 2012 amendment to the income tax law for indirect transfer of Indian assets. Finance ministry will soon finalise rules under the law to facilitate refund of principal tax collected and settlement of the cases, said an official.
The adverse verdict in the international arbitration case on retrospective tax filed by Vodafone Group last year got policymakers thinking that India needed to bite the bullet and bury the controversial provision to send out a strong signal to global investors, said people aware of the matter.
Another setback in the arbitration case filed by Cairn Energy in December 2020 gave further impetus to the idea, they said, adding that an hour-long
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