The chequered past of retrospective tax: All you need to know

The government has now proposed to refund principal amount in full to the litigants, with certain conditions

"Retrospective Taxation",  these two words have roiled foreign investors looking at India over the years, and led to multiple disputes between the Indian government and global majors like Vodafone and Cairn. The government on Thursday moved a Bill in Lok Sabha to scrap the controversial tax law.

But why did India bring such a law in the first place?

In May 2007, Vodafone bought majority stake in Hutchison Whampoa for $11 billion. The Indian government has raised a demand of Rs 7,990 crore in capital gains and withholding tax from Vodafone, saying the company should have deducted the tax at