Tiger Global Tax Ruling Still Rattles Foreign Investors in India

Repercussions of an India Supreme Court tax ruling are haunting foreign investors several months later despite government efforts to restore confidence that their interests won’t be damaged.

Major uncertainty remains even though the Central Board of Direct Taxes amended an anti-avoidance rule to address alarms raised by the court’s decision in a Tiger Global Management LLC case, tax professionals say.

While the amendment “is a welcome development, it does not put to complete rest the controversy surrounding claim of capital gains exemption under the India-Mauritius treaty,” said Himanshu Parekh, partner and head of tax (West) KPMG in India. In ...