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Last May, India signed the protocol amending the Double Tax Avoidance Agreement (DTAA) with Mauritius, giving India the right to tax capital gains arising from sale or transfer of shares of an Indian company acquired by a Mauritian tax resident from 1st April 2017. 

Earlier, only Mauritius could levy tax on capital gains and since there is no capital gains tax in Mauritius, a large number of foreign entities routed their investments in India through Mauritius. In fact, between April 2000 and December 2015, Mauritius accounted for $93.66 billion or 34% of the total foreign direct investment of $278 billion in India. 

To read the full fact sheet see HERE

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