Retrospective Taxation Regime in India; the “To Pay or Not to Pay” Question

Abstract

Taxation is one such policy function of the Government by virtue of which the financial sustainability and stability of governance is heavily dependent. While it is inherently the duty of the State to perform its role is providing amenities to citizens, it is on the other hand the public money which by the route of taxation reaches the authorities to fuel their activities. It is an ever-pervading cycle that goes on and keeps the state stable as well. Retrospective operation of a particular tax statue is the focus of this present paper. In the 2012-13 budget, the Indian government introduced an amendment to the Income Tax Act to enable it to tax retrospectively. This amendment set of a spate of litigations filed, among others, by Vodafone and Cairn Energy. The permanent court of arbitration at The Hague ruled in favour of the companies. This verdict has led to the Indian government taking a positive step to introduce an amendment to the erstwhile Act to withdraw the retrospective tax levied subject to certain caveats.

How to cite this article: Chatterjee A, Moulinath M. Retrospective Taxation Regime in India; the “To Pay or Not to Pay” Question. J Adv Res Polit Sci Gov 2022; 6(1): 14-17.