Brief by Shorts91 Newsdesk / 12:55pm on 24 Feb 2026,Tuesday Business
India and France have updated their 30-year-old tax treaty. The change lowers dividend tax for large French investors. Companies holding at least 10% in an Indian firm will now pay 5% tax, down from 10%. However, investors with less than 10% stake will pay 15%, up from 10%. The new pact also allows India to tax capital gains from share sales in some cases. It removes the most-favoured-nation clause after a 2023 Supreme Court ruling. Both sides said the update will “secure economic activity” and support more investment. The treaty will take effect after legal approvals in both countries. (PC: India Today)
