India: Withholding Tax

In a significant move to deepen foreign participation in India’s sovereign debt market, the Government of India promulgated the Income-tax (Amendment) Ordinance, 2026 on 5 June 20261, introducing a comprehensive tax exemption for eligible foreign investors investing in Government securities. Effective retrospectively from 1 April 2026, the Ordinance exempts specified income arising from Government securities from withholding tax and long-term capital gains tax, thereby addressing one of the principal tax-related barriers to foreign investment in Indian debt markets.

For multinational companies with established GCCs in India, profit repatriation is a natural extension of a successful operating model. When approached strategically, it allows businesses to optimize global cash flows while remaining aligned with India's tax and FEMA regulations.

インドの所得税制度は、過去60年以上の歴史のなかで最も広範かつ抜本的な構造改革を経験しました。2025年所得税法（IT Act, 2025）は、従来の1961年所得税法（IT Act, 1961）に代わるものであり、2026年4月1日に施行されました。さらに、本法には直接税中央委員会（CBDT）によって2026年3月20日に告示された2026年所得税Š

It is a trite to say that India's judicial system is bursting at seams and matters linger before Tribunals and courts for decades

In the dynamic start-up landscapes of Southeast Asia (SEA) and India, convertible notes have become a favoured tool for initial fundraising efforts.

For NRIs managing wealth across borders, taxes are often the single biggest hurdle on returns.

We are pleased to present the latest edition of Tax Street – our newsletter that covers all the key developments and updates in the realm of taxation in India and across the globe for the month of May 2024.

Recently, in a significant ruling of Nestle SA, the Supreme Court of India had examined the interpretation of the Most Favoured Nation (MFN) clause in Indian treaties with OECD member countries.

Corporate transactions and their related intricacies have always been a subject of frequent discussions in the corporate world.