In a bid to prevent "abuse" of the tax avoidance treaty, Indiaon Tuesday May 10,2016 signed with Mauritius an amendment to the pact to get rights to
tax capital gains on shares of Indian company sold after April 1, 2017.
The amendment to the 1983 Double Taxation Avoidance Convention (DTAC) with Mauritius was signed at Port Louis, Mauritius on Tuesdau.
Till now the DTAC did not provide for taxing capital gains in either of the two nations
With the signing of the amendment to the Double Taxation Avoidance Convention (DTAC) with Mauritius, sale of shares of an Indian resident company will be taxed at 50 per cent of the applicable rate between April 1, 2017, to March 31, 2019.
Full capital gains tax will apply from April 1, 2019.
The amendment to the 1983 Double Taxation Avoidance Convention (DTAC) with Mauritius was signed at Port Louis, Mauritius on Tuesdau.
Till now the DTAC did not provide for taxing capital gains in either of the two nations
With the signing of the amendment to the Double Taxation Avoidance Convention (DTAC) with Mauritius, sale of shares of an Indian resident company will be taxed at 50 per cent of the applicable rate between April 1, 2017, to March 31, 2019.
Full capital gains tax will apply from April 1, 2019.
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