<h1>India-Mauritius Tax Protocol: New Rules on Capital Gains, Interest Income, and Anti-Abuse Measures Effective April 2017.</h1> India and Mauritius have signed a protocol amending their convention to avoid double taxation and prevent fiscal evasion concerning income and capital gains taxes. The protocol grants India taxation rights on capital gains from shares acquired after April 1, 2017, with a transitional reduced tax rate until March 31, 2019. It includes a Limitation of Benefits clause to prevent treaty abuse by shell companies. Interest income from Indian debt claims to Mauritian banks will be taxed at 7.5%. The protocol aims to curb treaty abuse, enhance transparency, and improve the exchange of tax information between the two countries. Existing investments before April 1, 2017, are exempt from new capital gains tax provisions.