After loosing the demand case to Vodafone and Cairn Energy Plc. of retrospective taxes, a bill has been introduced in the Lok Sabha for amending the Income Tax rules and to scrap the retrospective taxation. Many questions are raised before the Income Tax rules after India lost both the cases.
The new bill amending the Income Tax Act, 1961 proposes “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.” Also, “any demand raised for indirect transfer of Indian assets made before May 28, 2012 shall be nullified on fulfillment of specific amount conditions such as withdrawal or furnishing of undertaking for withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost. damages, interest, etc. shall be filed.” May 28,2021 was the day when Finance Bill, 2012 received the approval of the President.