A retrospective tax law is one that takes effect from a date before it is passed. In India the retrospective taxation issue became controversial when the government amended Section 9 (i) (i)) of the Income Tax Act in 2012 to tax indirect transfer of assets after the Vodafone verdict (Supreme Court). Here, the law imposing tax on indirect transfer of assets in India was enacted in 2012, but the tax will be applicable to all transaction that took place from 1962 onwards (Income tax rule was passed in 1962).
