What is the new taxation law?

What is the new taxation law?

The Taxation Laws (Amendment) Act, 2021 (2021 Act), which received the assent of the President on the 13th August, 2021, has, inter-alia, amended the Income-tax Act, 1961 (Income-tax Act ) so as to provide that no tax demand shall be raised in future on the basis of the amendment to section 9 of the Income-tax Act made …

Who introduced retrospective tax in India?

“Retrospective Taxation”, these two words have roiled foreign investors looking at India over the years, and led to multiple disputes between the Indian government and global majors like Vodafone and Cairn. The retrospective tax provision was introduced by the United Progressive Alliance (UPA) government in 2012.

What is retro tax law in India?

Retrospective tax is nothing but a combination of two words “retrospective” and “tax” where “retrospective” means taking effect from a date in the past and “tax” refers to a new or additional levy of tax on a specified transaction.

What is AXE retro clause?

The bill proposes to withdraw all back tax demands levied under the law, allows the government to refund tax collected and settle cases if companies withdraw challenges filed in all legal forums. The government introduced a bill in Parliament on Thursday to this effect, marking the initiation of a key reform.

How taxes are collected in India?

The tax structure in India is divided into direct and indirect taxes. The taxation system in India is such that the taxes are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such as the Municipality and the Local Governments.

What is Vodafone tax India?

In Vodafone’s case, the government will refund ₹44.7 crore since the company had not paid any tax on the demand raised by tax authorities, which comes to ₹22,100 crore in taxes, interest and penalties. Vodafone has filed the application under a separate set of provisions.

What is retro tax this f y?

Retrospective tax law changes have effect for a period before the date of enactment once the legislation is passed. The announcement of proposed retrospective legislation poses a dilemma for affected taxpayers.

Is GST applicable retrospectively?

This retrospective levy means that an RWA will have to charge GST retrospectively from 1.7. 2017(provided the membership fee is more than Rs. 7500 per member as per CBIC Press Release No. 135 dated 22-01-2018).

What is retrospective tax Upsc?

Retrospective Taxation It allows a country to pass a rule on taxing certain products, items or services and deals and charge companies from a time behind the date on which the law is passed. Retrospective taxation hurts companies that had knowingly or unknowingly interpreted the tax rules differently.

What is the Vodafone tax case all about?

In the case of Vodafone, the tax department raised a tax demand of Rs 11,218 crore over its Hutch-Essar deal in the Cayman Islands. It was different as taxes were raised by validating an October 2010 order of the I-T department. Vodafone had challenged the tax demand at an international arbitration tribunal.

How many types tax in India?

There are mainly two types of Taxes, direct tax and indirect tax which are governed by two different boards, Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC). Let’s discuss the two types of taxes in detail.

What is the tax structure in India 2020?

Download the latest Guide for 2020 to get detailed information. The tax structure in India is divided into direct and indirect taxes. While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves.

What to expect from the Indian Tax Administration in 2021?

A significant theme that can be observed from 2019 onwards and which continues into financial year 2021 is the Indian tax administration’s unrelenting push for overhauling the tax assessment and dispute resolution machinery under the Income Tax Act 1961 (the Act).

What is the tax structure in India?

Taxation Overview in India The tax structure in India is divided into direct and indirect taxes. While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves.

Does India’s direct taxation regime offer free meals to taxpayers?

Whilst the Indian Central Government and State Governments grapple with the crippling effect of the forced lockdowns on the economy and vaccine supply-related issues, the direct taxation regime offers no free meals to corporate taxpayers, evidenced by no change in the corporate income tax rates for financial year 2021–22.