Today 🚨 The Taxation Laws (Amendment) Bill, 2021 was passed by the Rajya Sabha.

The Taxation Laws (Amendment) Bill, 2021 was passed by the Rajya Sabha today

It had been passed by the Lok Sabha on 6th August, 2021.

Salient features of the Bill proposes to amend Finance Act, 2012 so as to provide that the validation of demand under section 119 of Finance Act, 2012 shall cease to apply on fulfillment of specified conditions & on furnishing of an undertaking.

KEY FEATURES

  1. Provides that no tax demand shall be raised in the future based on the retrospective amendment made through Finance Act, 2012, for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012.

  2. Provides that the demand raised for indirect transfer of Indian assets made before 28th May 2012, shall be nullified on fulfillment of specified conditions and on furnishing of an undertaking.

  3. Proposes to refund the amount paid in these cases without any interest thereon.

  4. Proposes to amend the Finance Act, 2012 so as to provide that the validation of demand, etc, under section 119 of the Finance Act, 2012 shall cease to apply on fulfilment of specified conditions and on furnishing of an undertaking.

  5. Empowers CBDT to make rules to provide the form and manner in which an undertaking shall be submitted.

The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA related advisory, litigation & compliance matters.