what is retrospective tax?

Question

today i read a news article in 'the hindu' about vodafone tax issue? and i am pretty new to economics jargon. so if anybody knew what is retrospective tax is, please educate me about this term.

reference links are much appreciated :) thanks in advance.

Answer 1

Retrospective Taxation is a plain English. This means nothing but the old proceedings are being taxed as per the new rules.



For eg. Lets say that the current tax rates x% for the current assessment year the previous assessment year was (x-2)%. Because of some reason the IT department has arrived at a conclusion that previous assessment year also should be taxed at x% only not (x-2)%. This is called retrospective taxation.



With respect to Vodafone issue there are several complicated reasons because of which IT thinks that the taxation should be higher than they had actually paid. Lot of details about this specific case is available for you to refer online.

Answer 2

Retrospective Meaning

Answer 3

Define Retrospective

Answer 4

Retrospective tax is nothing but certain amendment or provision which are made applicable from past date are called effective retrospectively. In Vodaphone case also Govt has amended Income Tax Act 1961 and applied taxation on certain transaction done by Vodaphone out of India from past date.

Answer 5

what is retrospective tax

Answer 6

Nobody gives a damn what government in the UK does, they can rob us blind, take away our civil liberties and force us to work for crap minimum wages.