British oil major Cairn Energy and other companies who were charged with retrospective taxation would be provided a refund without interest, Finance Secretary TV Somanathan said on August 5, shortly after the Centre tabled a Bill in the Parliament to undo the 2012 retro tax law.
The proposed legislation, Taxation Laws Amendment Bill, would amend the Income Tax Act, 1961 to undo the provision which allowed taxing transactions prior to May 28, 2012.
"We will not enforce the tax demands. Amounts collected will be refunded minus interest," Somanathan said while speaking to CNBC TV 18.
This is an "important time for India to attract investments", the Finance Secretary said, adding that the new law is aimed at clearing apprehensions regarding India's taxation regime.