Retrospective amendments to fetch up to Rs40,000 crore, says I-T department
24 Apr 2012
The income-tax department estimates the total tax implication of retrospective amendments introduced in Finance Bill 2012 at Rs35,000 to Rs40,000 crore.
In all, the Finance Bill 2012 has proposed about 24 retrospective amendments on the direct tax front, according to tax experts.
''The figure of Rs35,000-Rs40,000 crore is an estimate and the exact amount is determined only when an assessing officer completes the assessment proceedings,' S S Palanimanickam, minister of state for informed the Rajya Sabha in a written reply today.
Finance minister Pranab Mukherjee's budget proposal is aimed at taxing Vodafone-type merger and acquisition deals that try to evade taxes.
Once the amendment is approved by Parliament, the British telecom giant would have to pay Rs11,000 crore as tax for its acquisition of the Hutchison's stake in Hutchison Essar in 2007.
In a separate reply, minister of state for finance Namo Narain Meena said: ''Foreign investors make their decisions taking into account all relevant factors and the investments are admitted into the country within the framework of the applicable laws, rules and regulations formulated to promote the country's interest.''
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