The Simplified Version: What It Means When Mauritius Based Investors Are Taxed in India From 2017


This post is authored by Mastermind, Deepak Shenoy and appears here.

Mauritius based entities that Invest in India – from Private Equity investors, VC funds, and investment pass-through vehicles (which issue participatory notes) will start to see taxation apply to them from April 1, 2017. This is due to a treaty change between India and Mauritius.

Here’s the full text of the treaty change.

Dude. Simplify.

Okay. Here’s the deal.

Currently, if you are a foreign investor, you can invest in Indian companies – both listed and unlisted. When you sell them, you would pay capital gains taxes in India (as many NRIs do) and some of those gains are withheld before you get the money.

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