Retro tax ghost buried as India moves to cut old indirect transfer demands

Old demands get wiped out while new rules stay targeted

A new Bill introduced in the Lok Sabha removes tax demands linked to indirect transfer of Indian assets for transactions before 28 May 2012. Instead, the rule will operate prospectively, taxing gains from selling foreign company shares only when those shares draw value from Indian assets. The move aims to end uncertainty over retro claims while preserving the policy’s core intent.