"Finance world" Retrospective amendment to fetch Rs 35,000-40,000 crore

According to estimates, the proposed retrospective amendment would result in an additional tax income for the government of between Rs 35,000 and 40,000 crore.

 Minister of state for finance S S Palanimanickam said that the income tax department have estimated the total tax implication of the proposed amemdment would be about Rs 40,000 crore. He was speaking to the Rajya Sabha members on Tuesday when he announced the massive figure.

 "The total tax implication in consequence of retrospective amendments introduced in the Finance Bill may be to the tune of Rs 35,000-40,000 crore", Palanimanickam said in a reply.

 Finance Minister Pranab Mukherjee is backing the proposed changes to the Income Tax Act with retrospective effect, which could once again open the Vodafone tax case making company liable to pay about Rs 11,000 crore as tax for an acquisition deal.

 Global business chambers including Confederation of British Industry, U. S. Council for International Business and Japan Foreign Trade Council have written a letter to the Indian PM with their concerns over the proposed changes to the law.

 Vodafone Group is planning its move over the tax claims as the government moves to change laws that will make the company liable to pay more than $2 billion in taxes.