Finance Minister Nirmala Sitharaman today said that it is the sovereign right of the Government to undertake retrospective legislation, if required, including legislation in respect of taxation. In a written reply in Lok Sabha, Ms Sitharaman said, however, it has been stated policy of the Government to provide a stable and predictable taxation regime that is investor friendly and spurs growth. She said, it has been the intention of the Government to not ordinarily bring about any change in tax laws retrospectively which creates a new liability. The Minister said, to reduce litigation, attract investment and bring certainty to tax policy, the Taxation Laws (Amendment) Act, 2021, amended the Income-tax Act.<br />'' <br />'' She said, it provides that no tax demand shall be raised in future based on the amendment to section 9 of the Act made through Finance Act, 2012 for any offshore indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012, the date on which the Finance Bill, 2012 received the assent of the President. Ms Sitharaman said, the amendment carried out in 2021 also provides that the demand raised for offshore indirect transfer of Indian assets made before 28th May 2012 including the validation of demand provided under Section 119 of the Finance Act 2012 shall be nullified on fulfilment of specified conditions. The conditions include withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, interest, etc. shall be filed and such other conditions are fulfilled as may be prescribed. She said, the amount paid or collected in these cases is refundable, without any interest, on fulfilment of the said conditions.