Prospective versus retrospective amendments

While tax laws by themselves are complicated, even more so are the provisions of the Income-Tax Act, 1961. Even after five decades there is uncertainty with regard to interpreting both the substantive and procedural provisions of the law. The focus and battle lines have shifted from domestic tax to international tax. Retrospective amendments to the law completely upset the applecart and make a mockery of business models which take into account certain concessions and incentives.