India-France Tax Deal: Dividend Tax Cut for Big Firms, Wider Capital Gains

• India and France are revising their 1992 tax treaty to modernize it and adapt to global standards.
• The revised treaty halves dividend tax for French firms with over 10% stake in Indian units (from 10% to 5%).
• India gains wider powers to tax share sales by French investors and revokes France's "most favoured nation" status.
• Dividend tax for minority French shareholdings (under 10%) in Indian companies will increase from 10% to 15%.
• The changes aim to boost investment, technology, and personnel flow, providing tax certainty between the two nations.

Why It Matters: India-France tax treaty revision impacts French investments and tax liabilities.