Even after the government clarified that multinational companies in India do not have to pay retrospective tax, sword is still hanging on more than 500 MNCs whose underlying assets are in India.

The income tax department is doing reassessment of all retrospective tax cases that are to be closed by March 31.

While Cairn Energy of the UK has already got a tax notice of Rs 10,247 crore ($1.6 billion), other foreign companies are likely to get a call soon from the taxmen.

"There are 500 plus foreign companies whose underlying assets are/were in India. The tax liability can be made under the retro amendment brought in under Section 9 of I-T Act, by the finance bill, 2012," 

A senior I-T official told dna that under Section 147 of Income Act, 1961, an Assesse Officer (AO) can do re-assessment, where the AO has a reason to believe that any income chargeable to tax has escaped assessment for any assessment year. "The AO may access or re-access such income or any other income chargeable to tax," said the official.

"Notice for re-assessment, where income has escaped amount of Rs one lakh or more, should be issued within six years from the end of the assessment year," an Income Tax official said. (www.casansaar.com)