Prime Minister Narendra Modi today announced that the controversial retrospective taxation is a thing of the past and this chapter will never be opened again in India, a statement aimed at addressing the concerns of foreign investors over predictability in the tax regime.
Addressing the business leaders of France and India here in presence of French President Francois Hollande, Modi said his government wants to ensure that foreign investors are clear about tax systems that will prevail in India over the next 15 years.
"I am for stable governance and predictable taxation system. The government is taking various steps to ensure this stability. This government is known for stable and predictable tax regime," he said.
In this context he referred to the Retrospective tax imposed in 2012 through amendments in the Income Tax Act, a step which had led to an outcry and anxiety among the investors, particularly the foreign ones.