The income tax department in India may demand retrospective taxes from telecom operators following a recent Supreme Court ruling. The court classified license fees paid by service providers as capital expenditure, rather than revenue expenditure. While the potential tax liabilities are unknown, it is estimated that Airtel and Jio could face liabilities of around INR 14,000 crore ($1.87 billion) without penalties. Analysts expect telecom operators to file review petitions in response to the ruling. The court's decision has not clarified the retrospective applicability of the ruling.