« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Finance ministry tax vexes Mumbai international financial... Chidambaram may discuss tax issues with PSB chiefs... » Cyprus may cease to be capital gains tax haven February, 12th 2008 The party may soon be over for investors coming into India from Cyprus. The double taxation avoidance agreement (DTAA) between the two countries is all set to lose the capital gains tax exemption benefit. Both the governments are understood to have concluded negotiations on amendments to the tax treaty, following which residents, both individuals and companies of Cyprus, would have to pay capital gains tax at the rate of 10%. A limitation on benefits clause to ensure ineligible entities cannot get a benefit under the tax treaty is also proposed to be inserted. The changes in the treaty were likely to be notified soon, sources said. Cyprus does not impose capital gains tax on its residents, and with India exempting the capital gains under the treaty, investors could avail of the benefits similar to the India-Mauritius DTAA. The dividend income is also exempt from withholding tax. The India-Cyprus tax treaty was notified in 1995. The proposed amendments to the India-Cyprus tax treaty are akin to the changes in the India-United Arab Emirates DTAA notified recently. Under the India-UAE tax treaty, capital gains have been made taxable in the state where the gains are earned. India is also trying to renegotiate its tax treaty with the island nation of Mauritius. With tax treaties with the UAE and Cyprus losing their tax concessions, it would be easier for New Delhi to wield pressure on Mauritius for amending the agreement. Interestingly, Mauritius, which is lobbying hard for continuing the tax treaty, has renegotiated the agreement with China and removed the tax concessions. Preventing abuse of tax treaties weighs high on the Indian governments agenda. The tax havens are used by investors to avail tax benefits by routing their investments through shell or paper box companies registered there. The National Common Minimum Programme of the United Progressive Alliance government has also resolved to prevent the misuse of tax treaties.