Mauritius to amend India-Mauritius DTAA

The amendment of the India-Mauritius Double Taxation Avoidance Agreement (DTAA) aims to address long-standing issues such as treaty abuse and round-tripping of funds, which have impacted fiscal fairness and transparency between the two nations. By incorporating provisions for source-based taxation of capital gains and interest, the amendment signifies a major shift in how investments from Mauritius into India will be taxed, aligning with global standards to combat tax evasion and enhance tax compliance. This move is expected to have significant implications for the flow of foreign direct investment (FDI) from Mauritius to India, ensuring that such flows are transparent and aligned with international tax norms.