India and France Update Tax Treaty, Adjust Dividend Taxes and Capital Gains Rules

India and France have revised their 30-year-old tax treaty during French President Emmanuel Macron's visit, introducing changes to dividend taxation and capital gains. The new agreement lowers dividend tax to 5% for French investors holding at least 10% in Indian companies, while increasing it to 15% for smaller holdings. It also removes the 'Most Favoured Nation' clause and expands India's right to tax certain transactions, aiming to safeguard India's tax base and encourage long-term investments. The treaty awaits formal approvals in both countries.