Bill to nullify retro tax will give impetus to India’s $5 trillion economy goal: I-T department

NEW DELHI: The Taxation Laws Amendment Bill, which seeks to nullify retrospective tax demands raised on companies, will instill investor confidence and provide impetus to India’s goal of becoming a $5 trillion economy, the Income Tax department said on Monday.

The bill, which was cleared by the Lok Sabha on August 6, was passed by the Rajya Sabha on Monday. The bill, as passed by the Upper House, will be cleared by the Lok Sabha for it to become an Act.

‘The Taxation Laws (Amendment) Bill, 2021’ seeks to withdraw tax demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets and also refund the amount paid in these cases without any interest.