<h1>India and Cyprus Update Double Taxation Agreement: New Rules on Capital Gains, Royalties, and Information Exchange.</h1> India and Cyprus have signed a revised Double Taxation Avoidance Agreement (DTAA) to replace the 1994 agreement. The new DTAA introduces source-based taxation for capital gains from share alienation, with a grandfathering clause for investments made before April 1, 2017. It enhances tax collection cooperation and updates information exchange provisions to international standards, allowing banking information exchange with prior approval. The agreement also broadens the definition of permanent establishment and reduces the royalty tax rate from 15% to 10%. The DTAA will take effect following internal procedures in both countries, applicable from the fiscal year starting April 1, 2017.