India to drop controversial retrospective tax aimed at foreign investors

Mark Battersby
clock • 2 min read

India has introduced a bill in its lower house to scrap a controversial 2012 law that retrospectively levied capital gains tax on companies for the indirect transfer of their Indian assets, the BBC's Mumbai correspondent has reported. The law, which will now apply only prospectively, has been a major sore point with foreign investors for the better part of the last decade, damaging India's reputation as a stable tax jurisdiction and leading to protracted litigation. "It is perhaps the boldest move taken in the history of Indian tax laws," said Bijal Ajinkya, Partner at the law firm Kh...

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