The Lok Sabha last week cleared the Bill to drop the controversial clause allowing retrospective levy of capital gains tax on transactions involving underlying assets in India. The Taxation Laws Amendment Bill 2021, which was introduced earlier, was cleared amid protest from opposition lawmakers over the three farm laws and Pegasus snooping.
When the House reconvened around noon, chairman Rajendra Agrawal allowed finance minister Nirmala Sitharaman to make a brief submission on the Bill. Industry bodies and experts have welcomed the move, arguing that it will help address a long pending concern.
Former finance minister P Chidambaram too supported the decision. “On the withdrawal of the retrospective tax (Vodafone), I am glad that we have put an end to an issue that has been troubling us for 8 years,” he tweeted. The law was changed by Pranab Mukherjee who succeeded Chidambaram as FM in the UPA government.