Insights
Mauritius Route : Gains from sale of mutual funds not taxable in India
July 16, 2025In this case, the Tribunal has held that capital gains arising from investments in equity-oriented mutual funds made through the Mauritius route would not be subject to tax in India.
This is a significant and welcome decision, especially in the context of the amended India–Mauritius tax treaty, which generally provides for taxation of capital gains in India for shares acquired on or after 1 April 2017. The Tribunal has distinguished equity-oriented mutual funds from equity shares which opens up fresh considerations for structuring investments through Mauritius, even in the post-amendment treaty regime.