What does retro tax mean referred to in the Vodafone case?

What is retro tax?

The retrospective tax law imposed a tax on companies’ capital gains, causing a fallout with British firms like Cairn Energy Plc and Vodafone group. The bill was announced by the late Pranab Mukherjee during his tenure as the finance minister and was approved by then President Pratibha Patil.

What is retrospective amendment?

Retrospective amendment

In a similar fashion, with respect to law or statute, it simply means ‘taking effect from a date in the past’. Therefore, if there is an amendment to the law and it is applicable from a specified date in the past but not future, it is termed as a retrospective amendment.

Can tax be charged retrospectively?

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.

How is retro pay taxed?

When you pay employees retro pay, you still need to withhold payroll tax. For tax purposes, retroactive pay is treated as supplemental wages. … When you give retroactive pay, you still need to withhold federal income tax and FICA taxes (Social Security and Medicare Taxes).

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What is retro pay on my paycheck?

The definition of retro pay (short for retroactive pay) is compensation added to an employee’s paycheck to make up for a compensation shortfall in a previous pay period.

What is retrospective effect?

RETROSPECTIVE EFFECT MEANS TAKING EFFECT FROM THE DATE IN THE PAST. EG: IF YOUR SALARY IS BEING INCREASED BY Rs.5000 P.M. WITH RETROSPECTIVE EFFECT, IT WOULD HAVE EFFECT FROM THE DAY U HAD JOINED UR JOB.

Can a taxing statute be given retrospective operation?

It is the settled legal position that there is a legal presumption that retrospective effect cannot be given to a statue unless specifically provided by the statute itself.

Which duty can be levied with retrospective effect?

The court held that Parliament acting within its legislative field had the power and could by law both prospectively and retrospectively levy excise duty under the Central Excise and Salt Act, 1944, even where it was established that by reason of the retrospective effect being given to the law, the assessees were …

Are laws retrospective?

Retrospective laws are ones that seek to change the law relating to the past – for example a retrospective law may make people criminally responsible for doing something that was not actually against the law when they did it.

What is the difference between retrospective and prospective?

In prospective studies, individuals are followed over time and data about them is collected as their characteristics or circumstances change. … In retrospective studies, individuals are sampled and information is collected about their past.

Can an Act of Parliament be retrospective?

As matter of principle an Act of Parliament is not without sufficient reason taken to be retrospective. There is, so to speak, a presumption that it speaks only as to the future. But there is no like presumption that an Act is not intended to interfere with existing rights.

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What does retroactive taxation mean?

It has been customary from the begin-ning for Congress to give some retroactive effect to its tax laws, usually making them effective from the beginning of the tax year or from the date of introduction of the bill that became the law.

What is the meaning of with holding tax?

A withholding tax is the amount an employer withholds from an employee’s wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year.

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