India is a democracy with strong, creadible Legal system. Anything which is contrary to law will be thrown out. In the Vodafore case also, Supreme court declared that the demand raised by the tax authorities is not tenable under the law. Now the government, in order to protect it`s revenues went ahead and amended the law with retro effect. The change also been challenged by the affected parties and the matter is not yet decided. However, good sense prevailed on the government which is now thinking of a solution with win-win strategy. If you go through the government argument, you will find some logic in their plea. They say the deal was structured in such a way to avoid payment of capital gains tax in India by floating Special entities outside India. Once the Vodafone was done, there were a large number such deal were done in the same lines. Government felt it is not in the interest of the country, to allow such circumventing transactions, thereby loosing it`s legitimate income.

Yes, only in rarest of rarest case.

It will shake confidence of FII and it will be penderox box starting from 1947. Not good for country

Higher Tax Revenue = Higher valued scams

What is a future government says, sorry we taxed you at a lower rate but our expenses are now increasing out of control. Can you please pay up some more tax? And if you don`t then it would amend the tax laws saying we are levying a retrospective surcharge on all tax paid.
What would you do?

Retrospective tax is unacceptable in a democracy and government for the people. If a government thinks it has erred or there is a legal loop hole then all it should do is to plug it. A government cannot punish some one who is smart to avoid taxes. A government should only punish those who evade taxes, and punishment should be brutal.
The way to avoid this is to tax all at a uniform rate of 15%. NO deductions allowed. So this way the income tax will be be simplified.
Any Indian who earns should pay tax via a pan card number. Even a laborer. and only a tax payer of 21 years of age or more should be allowed to vote.
This way we will elect responsible people.

Even a tank begins to leak over a period of time, however strong it may be, but what if, when we talk of growth, but do not make babus and netas accountable.

We have laws of the british, which provided immunity to officers in discahrge of duties, why do not we abrogate those laws, and make them accountable, for previously, they filled their own pockets, and there were honest officers too, but now, they have hierarchy of sharing collected loot in personal capacity, and further, they even collect heavily for the netas ?

So are loopholes going to vanish ?

[If someone has finalized a deal in consonance with the existing provisions] ....UR Q

Un Q.

What about bankers looting public, by enhancing charges ?

What about insurance companies, which take away ur agency as per IRDA norms, but who gets the benefit of the commission, the insurer, the agent, or the policy holder ?

If we tax an overseas entity retrospectively that will create a worry in them about future

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Dear Uppi,

[When we have gitti, road roller, man power, tarkol, etc.]

then why should we care to please them ?

(former comments came from a villager, sometime in 1992-1993, when BW was an ardent fan of MMS, but now it seems, that the villager was right)

Further, china has utilised its PSUs, to the hilt, and has converted them into manufacturing dragons, and on the other hand we are selling them to meet fiscal deficit.

The situation is analogous to that of a drunkard, who cares more about his drink, rather than the education, nutrition, or health of his family members ?

PPl at the top are behaving like :

Surya astaa

mazddor mast

though it is another thing that mazdoor gets mast by the booze

here those in power are intoxicated/infatuated with money

Daroo kaa nashaa to subah utar jataa hai,

par paise ka nashaa kabhi nahi utartaa

yes

it is okay for large companies
Tell us in few words

??...you can be the finance minister!! You talk like him....i mean without substance

Retrospective taxation is like beating up the chick for the hen being bald!!
If the government is incompetent in forming proper policies, why should they blame people who followed the poicies in place at that point of time?

And when you want honest taxpayers by whacking them retrospective ammendments, what about retrospective cancellation of Coal allotments....Chidambaram is as quiet as a Manmohan!!

No. There is nothing like rarest of rare case. The law should be crystal clear and not grey. There should be no ambiguity in law to be misinterpreted.

Dear Joseph jee,

There would not have been better note. Laudable.

Tilak R Sharma
13th Oct 2012*

Ours is a country having 140 crore population ( Govt says 121 crores) 20-25 crores indians live in unorganised pvement, i.e. rly stations, under bridges, varandas, rail lines side, remote forests etc and those indians have neither any address nor any vote in they are in National population Register. Pathetic conditions even after 65 years of independence.
Regarding taxes and wealth - People who got oppotunity looted the country and people during this 65 years. Looting in massive level took place after 1991. Rich people became super rich and poor became too poor.
So if we want see our country as good country to live in, every citizens should be identified and every inch of our land should be accounted. Wealth should be assed taking 1990 as base year and adjust inflation and value property/wealth as on date. Tax appropriately taking due account of income and wealth. Our nation will become surplus nation.