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India-France Tax Treaty Revamp: Capital Gains Tax Changes Ahead

12/12/2025

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Summary

Story summary

The revised India–France tax treaty removes the capital gains tax threshold, allowing India to tax all share sales by French investors.
The dividend tax for French companies with over 10% stakes in Indian firms falls from 10% to 5%, while minority-stake taxes rise from 10% to 15%.
The "most favoured nation" clause has been removed to resolve past disputes and tax uncertainties.
The agreement awaits cabinet approval in India.

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Story summary

The revised India–France tax treaty removes the capital gains tax threshold, allowing India to tax all share sales by French investors.
The dividend tax for French companies with over 10% stakes in Indian firms falls from 10% to 5%, while minority-stake taxes rise from 10% to 15%.
The "most favoured nation" clause has been removed to resolve past disputes and tax uncertainties.
The agreement awaits cabinet approval in India.