Retrospective tax policy burial does not come as a surprise

While it is good to see the government take this step, the question remains whether investors who have obtained an award that comprises of interest component will take up the offer.

In a welcome move that will potentially cheer the global investor community, the government has decided to withdraw the controversial retrospective tax laws on indirect transfer of assets. A bill to this effect that makes tax laws prospective (applicable in the future rather than backdated) was introduced in the Lok Sabha on August 5.

Such retrospective amendments militate against the principle of tax certainty and damage India's reputation as an attractive destination. This is a welcome step. It recognises the importance of certainty in tax laws, which is key in ensuring confidence in India as an attractive investment destination. The step