<h1>India-Singapore Tax Agreement Updated: Capital Gains Now Source-Based; Transition Measures for Pre-2017 Investments Included.</h1> The Third Protocol amending the India-Singapore Double Taxation Avoidance Agreement (DTAA) has been enforced from February 27, 2017, following its signing on December 30, 2016. The amendment shifts from residence-based to source-based taxation of capital gains from share sales, effective April 1, 2017, to prevent revenue loss and double non-taxation. Investments made before this date are grandfathered, with a two-year transition period taxing gains at half the normal rate. The protocol also introduces Article 9(2) to alleviate economic double taxation in transfer pricing and aligns with India's Base Erosion and Profit Shifting commitments. It further supports domestic anti-tax avoidance measures.