Following the decision to scrap the retrospective taxation provision, the Income Tax Department on Saturday released rules that will help close tax demands against companies such as Cairn Energy and Vodafone Plc.
The rules provide details for companies to give an ‘irrevocable’ undertaking to withdraw all legal cases against the government as well as an undertaking to not pursue any in future.
Earlier this month, the Centre had brought in The Taxation Laws (Amendment) Act 2021 stating that no tax demand shall be raised for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012.
