India notifies amended tax treaty with Mauritius

The Indian government has officially notified amendments to the Double Taxation Avoidance Agreement (DTAA) between India and Mauritius. The protocol, originally signed on March 7, 2024, in Port Louis, entered into force on August 10, 2026.

A key feature of the amended agreement is the introduction of a Principal Purpose Test (PPT). This mechanism allows tax treaty benefits to be denied if it is reasonable to conclude that obtaining such benefits was one of the primary purposes of a specific transaction or arrangement, provided the benefit is not consistent with the treaty's objectives.

The amendments are designed to prevent the misuse of tax treaty provisions and to curb tax evasion and avoidance, while simultaneously encouraging mutual trade and investment between the two nations.