Clarification regarding taxation of income from dividends and capital gains under the Indo-Mauritius Double Tax Avoidance Convention (DTAC)

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.... To, All the Chief Commissioners/Directors-General of Income-tax. Subject: Clarification regarding taxation of income from dividends and capital gains under the Indo-Mauritius Double Tax Avoid ance Convention (DTAC). 1. The provisions of the Indo-Mauritius DTAC of 1983 apply to "residents" of both India and Mauritius. Article 4 of the DTAC defines a resident of one State to mean "any pe....

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.... Mauritius resident. Under the Income-tax Act, 1961, tax was deductible at source at the rates specified under section 115A, etc. Doubts have been raised regarding the taxation of dividends in the hands of investors from Mauritius. It is hereby clarified that wherever a certificate of residence is issued by the Mauritian authorities, such certificate will constitute sufficient evidence for accepti....