India amends DTAA with Mauritius

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On 10 May, India signed a protocol to amend its double taxation avoidance agreement (DTAA) with Mauritius. The following summarizes the amendments introduced under the protocol:

Jetty_Mauritius_sunset1. Taxation of capital gains on shares

Under article 13(4) of the India-Mauritius DTAA, capital gains derived by a Mauritius resident from alienation of shares of a company resident in India were subject to tax in Mauritius alone. However, the protocol amends the DTAA to source-based taxation principles. Therefore, capital gains arising on or after 1 April 2017 from alienation of shares of a company resident in India will be subject to tax in India.

However, this change is subject to the following qualifications:

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