https://www.taxtmi.com/highlights?id=85172 ITAT ruled that capital gains from shares acquired before 01/04/2017 by a Mauritius resident are exempt under India-Mauritius DTAA Article 13(3)/(4), being taxable only in the state of residence. The AO's action of netting off post-2017 losses against pre-2017 gains was incorrect. The tribunal held that pre-2017 gains remain fully exempt per original DTAA provisions, while losses from shares acquired post-01/04/2017 can only offset future gains from post-2017 acquisitions. The carried forward losses from AY 2020-21 cannot be set off against exempt foreign income but must be preserved for future eligible gains. The assessee's appeal was allowed, maintaining separation between pre and post-2017 DTAA treatment. en-us Sat, 25 Jan 2025 08:26:36 +0530 Sat, 25 Jan 2025 08:26:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=85172 ITAT ruled that capital gains from shares acquired before 01/04/2017 by a Mauritius resident are exempt under India-Mauritius DTAA Article 13(3)/(4), being taxable only in the state of residence. The AO's action of netting off post-2017 losses against pre-2017 gains was incorrect. The tribunal held that pre-2017 gains remain fully exempt per original DTAA provisions, while losses from shares acquired post-01/04/2017 can only offset future gains from post-2017 acquisitions. The carried forward losses from AY 2020-21 cannot be set off against exempt foreign income but must be preserved for future eligible gains. The assessee's appeal was allowed, maintaining separation between pre and post-2017 DTAA treatment. Highlights Income Tax Sat, 25 Jan 2025 08:26:36 +0530 https://www.taxtmi.com/highlights?id=85172