Rules On Retrospective Tax Demand Being Framed, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said rules that will facilitate scrapping of retrospective tax demands will be framed soon.

Finance Minister Nirmala Sitharaman on Monday said rules that will facilitate scrapping of retrospective tax demands made on companies like Cairn Energy Plc and Vodafone Plc will be framed soon. "Rules will have to be framed... rules will be famed soon, she told media persons." During the recently concluded Monsoon session, Parliament had passed a bill to scrap a tax rule that gave the tax department power to go 50 years back and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India. The 2012 legislation was used to levy a cumulative of Rs 1.10 lakh crore of tax on 17 entities, including UK telecom giant Vodafone.