SC Rules Tiger Global Must Pay Tax on 2018 Flipkart Deal Gains

The Supreme Court of India has decided that Tiger Global, a US-based investment company, must pay taxes on the profits it made from selling its shares in Flipkart when Walmart bought the company in 2018.

The court said that Tiger Global tried to avoid taxes by using a complicated setup involving companies in different countries, but this setup was not allowed under Indian law.

The court's decision is important because it affects how other investment companies structure their deals in India.

Lawyers say that companies will now need to be more careful about how they set up their investments to avoid tax problems.

The court also used a special rule called GAAR to make this decision, which is meant to prevent people from avoiding taxes through clever but illegal schemes.

Some experts are worried that this ruling might make foreign investors nervous about putting money into India, while others believe it is important for India to protect its tax rights.

The Central Board of Direct Taxes (CBDT) has assured that old cases will not be reopened, seeking to reassure investors and invested entities.