Finance minister Pranab Mukherjee on Friday sought to address America's concerns about the proposed India tax law amendment, calling them "misapprehensions".
"There is a sense of despondency among a section of US businessmen and particularly because of their apprehension — I would say misapprehensions — about certain legislative amendments that we have proposed in my fiscal proposals in the budget," he said at a Washington think tank. To them, he said, he would say India's tax regime is "clear and stable".
Mukherjee's visit to the US for the spring meetings of the IMF and the World Bank group has been dogged by enquiries about the tax amendment he had proposed in the context of the five-year $2.2 million tax dispute between Vodafone and the government. The law doesn't allow the amended provision to be applied to cases older than six years, he added.