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How far do you agree with scrapping of retrospective tax laws as the opportunity for correcting a momentous blunder in the contemporary history of taxation laws in India? Examine.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

3. How far do you agree with scrapping of retrospective tax laws as the opportunity for correcting a momentous blunder in the contemporary history of taxation laws in India? Examine. (250 words)

Reference:  The Hindu

Why the question:

Finance Minister Nirmala Sitharaman recently introduced the Taxation Laws (Amendment) Bill in the Lok Sabha to nullify the tax clause provision that allows the government to levy taxes retrospectively.

Key Demand of the question:

Examine the positives of scrapping of retrospective tax laws.

Directive:

Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction:

Start with the context of the question.

Body:

The answer body must have the following aspects covered:

First explain in detail the existing norms of retrospective tax laws and policies that are in force in the country.

Enlist the genesis of the retrospective tax imbroglio that India has been facing.

Discuss the proposed changes that the government intends to bring, highlight their positives.

Conclusion:

Conclude with way forward.