Govt approaches 17 companies to settle retrospective tax cases

A couple of weeks after the Income-Tax (I-T) Act was amended to junk the contentious retrospective taxation provision, the government is reaching out to 17 affected companies to withdraw cases from various judicial levels and derive the benefit of the legal correction.

The government has made the first move and offered to settle the retrospective cases because it would be a fresh challenge if these companies decide not to withdraw cases pertaining to the 2012 legislation on the indirect transfer of Indian assets.

The rules under the Taxation Laws (Amendment) Act, 2021, are expected this week. The government has collected about Rs