October 14, 2026 3:01 PM
India notifies amended tax treaty with Mauritius, introduces principal purpose test
The Income Tax Department has notified amendments to the India-Mauritius Double Taxation Avoidance Agreement (DTAA), introducing a principal purpose test (PPT) aimed at preventing the misuse of treaty provisions for tax avoidance and evasion. Under the revised agreement, tax treaty benefits may be denied if obtaining such benefits is found to be one of the principal purposes of a transaction or arrangement. According to the notification, benefits will not be granted if, after considering the r...