Retrospective Taxation in India – Meaning, Issues, Way Ahead

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In 2020, India lost arbitration cases to Vodafone and Cairn. These cases were against India’s retrospective taxation regime that came into effect on 2012. On December 21, the Indian government challenged the Vodafone case verdict before the Singapore Court. Given the retrospective taxes’ reputation of being unattractive for investors, the government could do well in removing such taxations – especially at the time when India is considering increasing investments to ensure Atmanirbhar Bharat. Alterations in this regard should be ensured to enable India to become a lucrative investment destination.

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