India shields pre-2017 investment gains from tax rules
India will not apply strict tax evasion rules to foreign investments made before April 2017. The move eases investor concerns after a recent court ruling.
India has announced that it will not apply its stringent anti-tax avoidance regulations to foreign investments made before April 2017. The decision aims to provide clarity to global investors following a recent court order that had raised concerns about potential retrospective tax scrutiny.
The clarification follows a Supreme Court ruling in December which determined that Tiger Global must pay taxes on a $1.6 billion sale of a stake in an Indian company conducted in 2018. The court found that the firm’s units in Mauritius functioned as conduits, thereby disqualifying them from treaty benefits typically applied to pre-2017 investments. While Tiger Global denied any wrongdoing, the ruling led to fears among the investment community that tax authorities might reopen past transactions routed through tax havens.
