What is retrospective tax law in India?

A retrospective tax is a tax imposed on a transaction or deal that was conducted in the past. It was introduced in a 2012 amendment to the Finance Act, which enabled imposition of retrospective tax on deals executed after 1962 involving transfer of shares in a foreign entity which had assets in India.

What is meant by retrospective taxation?

Hence, retrospective tax means creating an additional charge or levy of tax by way of an amendment from specified date in the past. For eg: While retrospective amendment may or may not have an additional tax levy or charge, retrospective tax will have an additional tax levy.

What is retrospective law?

The meaning of the word retrospective is backdated or to look back. Therefore, the retrospective law is a law that has backdated effect or is effective since before the time it is passed. The retrospective law is also referred to as ex post facto law.

What do you mean by retroactive law?

Definition of retroactive law : a law that operates to make criminal or punishable or in any way expressly affects an act done prior to the passing of the law — compare ex post facto law.

What is a retroactive effect?

(also retrospective) If a law or decision, etc. is retroactive, it has effect from a date before it was approved: the first British law to have retroactive effect.

What is called retrospective?

retrospective • \reh-truh-SPEK-tiv\ • adjective. 1 a : contemplative of or relative to past events : characterized by, given to, or indulging in retrospection b : being a generally comprehensive exhibition, compilation, or performance of the work of an artist over a span of years 2 : affecting things past : retroactive.

How is the law retroactive?

As a general rule, laws shall have only a prospective effect and must not be applied retroactively in such a way as to apply to pending disputes and cases. A law is considered retroactivity if it is clearly expressed in the language of the statute[8].