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What is Retroactive Tax?

A retroactive tax is one  which is is imposed on previous financial activity in the previous years. This term has gained notoriety in view of govt budget proposals where by it wants to make foreign companies to pay tax as per their previous transactions.

Vodafone is a case in point which is being targetted with this proposal. We would only ask govt to make rational proposals in budget so that it does not send wrong message to investors and companies across the world.

We have written that because of these short sighted policies and non clearance of policies on financial transactions we may see Nifty going down and same can be read as Nifty Prediction in short term.

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