India and France Amend Tax Treaty, Revise Capital Gains and Dividend Tax Rules

India and France have amended their 1992 Double Taxation Avoidance Convention, removing the most-favoured-nation (MFN) clause and revising tax rules. The updated treaty grants India full taxing rights on capital gains from share sales based on company residency. Dividend tax rates now vary: 5% for shareholders holding at least 10% equity and 15% for others. The changes aim to enhance tax certainty, strengthen cooperation, and may affect French investors using participatory notes and major companies operating in India.