He was responding to a question from the audience here on the issue at the ET Global Business Summit.
"I always felt Vodafone tax decision was an erroneous decision. This government decided it will not be taking any retrospective decision," Jaitley said.
It was precisely for this reason that the Long Term Capital Gains Tax reintroduced in the Budget earlier this month had been exempted for investments made up to January 31, 2018, he added.
The Budget 2018-19 has proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10 per cent, which is expected to bring in revenue of Rs 20,000 crore.
However, capital gains made on shares until January 31, 2018, will be "grandfathered", Jaitley said while presenting the budget, adding "we have protected all investments coming in before February 1".
Vodafone is facing tax claims and interest totalling more than Rs 22,000 crore in India, which includes Rs 14,200 crore for acquiring Hutchison's stake in 2007.
The company last year said an international arbitration tribunal would begin trial on Vodafone's challenge to India's retrospective legislation to seek Rs 22,100 crore in taxes.
In this connection, the UK India Business Council (UKIBC) has said that predictability and clarity regarding retrospective taxation would help British companies to invest more in India.
"I think that if there was more clarity, certainty, predictability around retrospective taxation and (resolving) the Vodafone issue that would help the UK companies make their investment decisions in India," UKIBC Managing Director Richard McCallum told IANS over a telephonic interaction on Friday.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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