Retrospective Taxation:
The Income Tax Act 1961 was amended to make provision for a retrospective tax rule (2012). It allowed the government to collect taxes from companies on mergers and acquisitions (M&A) that happened before 2012 as well.
This was hugely debated and was opposed by industries as being unfair taxation.
But on August 5,2021 GoI proposed to withdraw all tax demands under retrospective taxation law of 2012, on firms like vodafone, cairns energy etc. GoI has also assured to return the money collected to enforce such levies.
