Supreme Court Denies Tiger Global Tax Relief

The Supreme Court recently made a big decision about taxes.

A company called Tiger Global sold its part of another company called Flipkart.

Tiger Global tried to avoid paying taxes in India by using companies in Mauritius, which has a special tax agreement with India.

The Indian tax authorities said this was not fair because the Mauritius companies didn't really do any business there.

The Supreme Court agreed with the tax authorities and said Tiger Global has to pay the taxes.

The court explained that just having the right papers isn't enough if the companies aren't really doing business.

This decision is important because it shows that India can stop companies from avoiding taxes using complicated setups in other countries.

The court also said that the rules about tax avoidance apply to when the sale happens, not when the investment was made.

This could affect other investments made before the rules changed.

The government now needs to make clear rules so that investors know what is allowed and what is not.