No retrospective taxation, says finance minister Arun Jaitley

Finance minister Arun Jaitley has said that the Narendra Modi-led NDA government would not move on retrospective taxation, and would let previous tax notices and what he called 'legacy issues' from the earlier government be sorted through India's judicial system.

Finance minister Arun Jaitley has said that the Narendra Modi-led NDA government would not move on retrospective taxation, and would let previous tax notices and what he called 'legacy issues' from the earlier government be sorted through India's judicial system.

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Asked about recent tax notices to Cairn Energy, Jaitley told newspersons on Saturday that 'earlier notices' would need to be sorted through the judicial process.

Any investigating tax officer who would now want to levy such taxes would need clearance from the Central Board of Direct Taxes, he said.

"The new government will not move for retrospective taxation. We accepted what courts said in the Vodafone tax case. We did not challenge the rulings. But there are legacy issues from the previous government, which can be sorted through the courts," he said.

Stating that there was 'huge amount of enthusiasm' among investors about India, Jaitley said that during his meetings in London the investors were keen to scrutinise on two counts: whether the government was moving incrementally on what it had promised, and whether the government was able to overcome 'obstructions' to reform.