Jul 01, 2016

Press Release on New Indo-Cyprus Double Taxation Avoidance Agreement

GoI by way of a Press Release dated July 1, 2016 announced its in-principle agreement with the Government of Cyprus regarding finalisation of the New Indo-Cyprus Double Taxation Avoidance Agreement, which, inter alia, provides for source based taxation of capital gains with a grandfathering clause for investments made prior to April 1, 2017, in respect of which, capital gains would be taxed in the country where the taxpayer is resident. It was further agreed that India will consider rescinding the notification declaring Cyprus as a Notified Jurisdictional Area under section 94A of the Income-tax Act, 1961, with retrospective effect.




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