Taxation Laws (Amendment) Bill, 2021
Key Features of Taxation Laws (Amendment) Bill, 2021
1. Provides that no tax demand shall be raised in the future based on the retrospective amendment made through Finance Act, 2012, for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012.
2. Provides that the demand raised for indirect transfer of Indian assets made before 28th May 2012, shall be nullified on fulfillment of specified conditions and on furnishing of an undertaking.
3. Proposes to refund the amount paid in these cases without any interest thereon.
4. Proposes to amend the Finance Act, 2012 so as to provide that the validation of demand, etc, under section 119 of the Finance Act, 2012 shall cease to apply on fulfilment of specified conditions and on furnishing of an undertaking.
5. Empowers CBDT to make rules to provide the form and manner in which an undertaking shall be submitted.
Key Benefits of Taxation Laws (Amendment) Bill, 2021
1. Will instill foreign as well as domestic investors’ with confidence in the Indian Economy.
2. Will spur companies which are at the cusp of deciding their investments into investing in India.
3. Will avoid unnecessary litigation and saves time and costs of the government.
4. Will boost the policy of the government to have a predictable tax regime.
5. Will provide impetus to country’s goal of becoming a $5 trilion economy.
