Govt issues draft rules to end retrospective tax

The Centre on Saturday released draft rules including preconditions for withdrawing retrospective tax demands on aggrieved investors such as Cairn Energy Plc and Vodafone Plc, provided they “irrevocably” withdraw all existing cases against the government and furnish an “undertaking” that they would not initiate any legal action to claim costs, damages or interest in future.

The draft was put up for public suggestions and comments from all stakeholders by September 4. After the deadline, the rules will be finalised by incorporating relevant suggestions to operationalise the Taxation Laws (Amendment) Act, 2021 that was enacted during the monsoon session of the Parliament earlier this month, a finance ministry official said requesting anonymity.