ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Nine Years of Turmoil in Taxation

In 2012, the finance ministry of the Government of India amended the Income Tax Act to tax capital gains from indirect corporate transactions. This law was applied retrospectively, permitting the finance ministry to tax companies for similar transactions in the previous half a century and creating consternation among foreign investors. The ministry decided to dispense with this in August 2021. Despite the altered legal position that this law will apply prospectively instead of retrospectively, the woes of the ministry are not over.
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