Context: GoI scrapping retrospective taxes is welcome, but it’s not enough.
Evolution and demise of retrospective taxation in India
Implications of the retrospective taxation episode
Conclusion: Retrospective taxation is not only immoral but bad in practice too. India wants all future disputes to be settled in India, not abroad. Given interminable delays in India, we should welcome the quick resolution of disputes in international arbitration, reducing the caseload in India. Rescinding the 2012 law is a good start. But much more is needed.