India takes back tax power, rewrites treaties with Mauritius, Singapore & Cyprus
Times of India 1 hr ago·16 Sept 2026, 9:30 am
The Indian government has officially terminated its bilateral tax treaties with Mauritius, Singapore, and Cyprus. This move removes the long-standing legal framework that allowed foreign investors to route funds into India with a tax advantage. Consequently, capital gains from investments made through these jurisdictions will now be taxed in India, effectively closing a major loophole used by foreign entities to defer taxes.
This change is significant for investors as it aims to increase transparency and broaden the tax base. It eliminates the tax benefits that previously made these countries popular entry points for foreign capital. While the move is expected to improve compliance, it may also alter how foreign investors view India as a destination, potentially affecting the valuation of stocks held by non-residents.
Investors should monitor the government's implementation timeline and any subsequent notifications. The market may see short-term volatility as foreign portfolio investors adjust their strategies. It is also important to watch for any new treaties that the government might sign to replace these exiting agreements, as this will shape future capital flows into the country.
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- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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