India tightens tax rules for Mauritius investments
India's finance ministry amended the India-Mauritius Double Taxation Avoidance Agreement, introducing a Principal Purpose Test (PPT) to scrutinize offshore investments. This change, effective from August 10, 2026, allows tax authorities to deny benefits if tax relief is a principal motive. The move impacts $185.21 billion in FDI from Mauritius, altering how treaty claims are assessed.