Impact Of Abolishing Retrospective Taxation On Investment Space In India

Ojaitra Arora & Hemant Srivastava, Amity Law School, Lucknow


The global pandemic has been catastrophic to all the sectors and the financial market is at record highs. It highlights the intricate relationship that exists between the economy and taxation by focussing on the dismissal of the most controversial retrospective taxation law from the books of Indian economy. This research paper fills the gaps in the lack of preparedness of Indian systems towards a sustainable future and will help us in understanding the impact of taxation on the country’s economy. The global crisis clubbed with exhaustive retrospective tax demands had changed investor perspectives regarding how they should allocate their money in India. These factors caused the investors to lose confidence in India as an attractive investment destination. Regulators now need to cautiously shift the financial trajectory towards sustainability. The Indian systems are prepared to turn crisis into opportunity and intend on growing their economy during and after COVID-19. They intend to continue to do strategic investor- friendly deals by eradicating political complacency. If the investor economy has to be profitable in the long run, we will have to invest in the solutions to the problems.

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.