Page 35 - CafeSocial-July-2021

A Decision To End Retrospective Taxation
STRENGHTENING TRUST BETWEEN
INDIAN GOVERNMENT AND INDUSTRY
India and Its Journey of Retrospective Taxation (Since 2012 )
“In this world, nothing can be said to be certain, except death and taxes”
W I T H T H E I N T R O D U C T I O N
retrospective taxation, the Government of
India has travelled a very unpredictable and
difficult road. As for the latest amendment of
2021, the government has decided to take
over the reins and resolve various disputes
which were becoming akin to a noose
tightening around their neck, but it is yet to
be decided, whether it would lead the
government to its intended destination or
would it further draw out the journey.
- Benjamin Franklin
2012 FINANCE ACT- INDIA MAKING SUMS
WRONG
The 2012, Income Tax amendment ( IT
Act) had sought to allow India to
retrospectively tax cross-border transactions
o f of companies whose underlying assets were
located in India. Under the amendment, all
persons, whether resident or not, for the
purposes of taxation, having business
connection in India, were liable to pay TDS to
the government, even if the transaction had
taken place overseas.
While the Act had also redefined
capital assets and transfer u/s.2 of IT, major
change were seen u/s.9 of IT. Amended
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