On 5 August, The Taxation Laws (Amendment) Bill, 2021 was introduced in the Indian parliament. This Bill seeks to withdraw the retrospective applicability of indirect transfer provisions under the Income-tax Act, 1961, subject to fulfilment of conditions.
The Bill comes as a positive and welcome move by the Government of India and aims to restore the confidence of foreign investors. After the Bill had been introduced in the Lok Sabha, a senior official of the Government of India reiterated the importance of foreign investment to the Government of India and stated that “India is committed to predictability in taxation”.
Taxand India, Economic Laws Practice, provides a detailed analysis of the Bill and its positive implications for foreign investments into India.
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